Japanese reforms start with the banks

JAPAN - It's not a bad rule for the Japanese government. It may at last be grasping Japan's stoniest problem, its partly petrified banking system.

For two months after his election as head of the Liberal Democrats, and therefore Prime Minister until the Japanese electorate chooses otherwise, Junichiro Koizumi avoided addressing the banking problem.

But now he's tackling it, through a new state agency, the Banks Shareholding Acquisition Corporation (BSAC).

During Japanese reconstruction after

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