Washington International Law Journal


The original work was written by Hiroshi Naka and Akio Nakamura and was translated by Atsushi and Scott Siegler.


This translation of an original Japanese language work, by Hiroshi Naka and Akio Nakamura, both of the Japanese Ministry of Finance, details the reforms of Japan's financial and securities & exchange system made under the recently enacted System Reform Act. The major reforms under the Act include: (1) altering the "Glass Steagall" rule (the separation of securities business and banking business) in Japan so that banks and securities companies can engage in each other's business through their subsidiaries; (2) extending securities regulations to some new types of structured finance; (3) amending public offering provisions and providing new articles for private placement; and (4) amending and adding provisions to secure the soundness of banking operations, including capital requirements, and safeguards against harmful side effects (firewalls) which may arise from a bank's moving into securities business. This English language translation, along with the translators' detailed notes, provide an insightful look into these reforms.

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