Japan’s Central Bank Warns Bankers: The head...

Japan’s Central Bank Warns Bankers: The head of the Japanese central bank warned the country’s cash-rich commercial bankers to be careful about financing highly leveraged corporate buyouts abroad. “The decision to participate in LBOs should basically be made by each individual bank, but they have to be careful about the possible risks involved in such deals abroad,” Bank of Japan governor Satoshi Sumita said. He warned that LBO deals could run into difficulties in paying off the huge loans if interest rates rose and economic conditions worsened.