8308) is one of the new Japan
ese megabanks. It was initially formed in 2001
as a holding company for Daiwa Bank
, but later acquired Asahi Bank
in a huge merger
that placed it in the same league as Mizuho
, Mitsubishi Tokyo
, and UFJ
In March 2003, Resona revealed that its capital adequacy ratio had fallen below the legal floor of four percent. On May 19, 2003, the Japanese government gave Resona a ¥2 trillion ($16 bn) bailout, and took majority control of the company in the form of preferred stock. Under the rules of the Tokyo Stock Exchange, no company can be publicly traded if a single investor owns more than 75% of its stock: the government stake in Resona is lower than this, so the company remains on the market.
Auditors have cleared the other megabanks, so early fears of a large-scale bank nationalization wave have been somewhat assuaged. However, the opposition Democratic Party of Japan has criticized the deal as too little, too late, while the entire financial industry in Japan aches.