NEW YORK - The Japanese government completed an agreement Wednesday to sell nationalized Long-Term Credit Bank of Japan, or LTCB, to a consortium led by the U.S. investment group Ripplewood Holdings LLC.New York-based Ripplewood and the other companies, collectively called New LTCB Partners, will invest $1.1 billion in the newly created LTCB and apply for $220 million of public funds from the Japanese government. This will be on top of the $1.9 billion yen of taxpayer money that was pumped into the bank in 1998 when it was nationalized.
Other members of the partnership include GE Capital, a unit of General Electric Co., Travelers Insurance, which is part of Citigroup Inc., Deutsche Bank AG, Bank of Nova Scotia, and ABN Amro Holding NV. LTCB, once one of Japan's biggest banks, was taken over in 1998 after regulators determined that it would never recover from a mountain of bad loans. It was the first time the Japanese government had taken over a bank since World War II.