Thursday, December 22, 2011

TEPCO's Chairman and President to Resign As TEPCO Is Being Effectively "Nationalized"

a la GM and AIG. Nothing new under the sun.

Chairman Katsumata and President Nishizawa will resign as the money from the government (to be collected ultimately from taxpayers of course) flows in to support TEPCO's operations to the tune of 2 trillion yen (US$25 billion).

From Fukushima Minpo (12/22/2011):


TEPCO and the Nuclear Damage Liability Facilitation Fund [set up by the national government] started discussion on December 22 to reshuffle the top management in order to receive the public fund. It is likely that all directors with representation right when the Fukushima I Nuclear Plant accident happened will resign, including President Toshio Nishizawa, who became the president in June, and Chairman Tsunehisa Katsumata. The new chairman will be selected from outside the company, while the new president is likely to be promoted to the position from within.


TEPCO and the Fund, which was set up by the government, have decided that it is necessary to clarify accountability. In the new management, more outside directors will be elected to the board which has only one such director right now so that they keep a keen eye on the operation of the company.

Blah blah blah.

Fat retirement package and fat pension, and descend to affiliated companies or research institutes as executives or as consultants - that's my guess.

The Nuclear Damage Liability Facilitation Fund is funded by the government (7 billion yen) and the electric power companies that operate nuclear power plants in Japan (7 billion yen).

According to Asahi Shinbun (12/21/2011) and others, the national government will ask 70 financial institutions to lend the total of 1 trillion yen to TEPCO. The government will ask these institutions to lend another 1 trillion yen to the Nuclear Damage Liability Facilitation Fund with the national government's guarantee. The Fund will funnel that money to TEPCO, and in return will acquire more than two-thirds of the company by acquiring special class of stock to be issued, so that it will be easier for the Fund to later sell the shares in the future.

Why? Because it has become more apparent that the liabilities will exceed net assets at TEPCO soon.

This looks so familiar that I feel like I'm back in 2008.

Banks are happy, as the loans to TEPCO will be guaranteed by the national government - i.e. backstopped by the taxpayers. Bond holders are happy, as there will no headshave. Shareholders are happy because common stocks are not diluted, and the company will not go bankrupt if it is "nationalized".

TEPCO's corporate bonds are held widely by institutional investors as they have been considered safe, issued by a solid, profitable company, TEPCO. Not any more, but the large institutional investors, including Japan's Pension Fund, cannot suffer, can they?

TEPCO denies it is a "nationalization", but if it squawks like a duck and walks like a duck it is a duck. As if to celebrate the joyous occasion that it will be all paid by the Japan's current and future taxpayers, TEPCO has announced the increase in utility rates for both businesses and individuals.

So the Japanese people will be made to pay in multiple ways for TEPCO and the government: rate increase, increased cost of goods because of higher utility cost for the businesses, tax, and endless tax for decades to decommission the reactors and to decontaminate the highly contaminated Fukushima Prefecture.

TEPCO says "Please understand the difficult situation we're in" on their Japanese homepage. How about TEPCO understanding the difficult situation it has put the Japanese people in?

And just like the mortgage fraud and foreclosuregate, no one has gone to jail.


Anonymous said...

NO,but is 2 trillion DOLLARS enough? IRAQ 1 trillion + 4 more for long term health care of vets.
Japan better start printing more YEN, at least it will help with the exchange rate.

Anonymous said...

Noda's Next. Give the lying sack of shit a few months.

kintaman said...

So TEPCO execs will retired and flee Japan with their golden parachute millions? NO!!! Do NOT let them off. Put these men and their families on site at the reactors to do clean up forcibly.

kintaman said...

Check out this great video:

2006 Architect scandal vs 2011 Fukushima Daiichi scandal

Anonymous said...

Well it is not a nationalization if the profits aren't also garnered by the state... For once, TEPCO is not lying.

netudiant said...

The policies of the Japanese government in this situation are entirely logical, at least imho.
If TEPCO were nationalized, the government would be entirely dependent on the large contractors such as Toshiba to do the work, with no recourse. With TEPCO still in charge, at least nominally, there is some modest accountability in the process.
As the overall cost of this disaster will be at least $100 billion, well beyond TEPCO's resources, it is obvious the government must eventually pay the bills.
Again, TEPCO serves as a doorkeeper, helping to ensure that this recovery spending does not become an open door into the taxpayers wallet.
The critical issue is to ensure good supervision of the funds spent, to prevent formation of a cozy contractor cartel that uses Fukushima as an annuity.
Based on the experience to date, I believe that is an impossible task, so the government is probably best served to steer the effort to encourage advancements in robotics for the cleanup. That way Japan will at least get something for its money beyond just a cleanup.

The Master Of Horror said...

TEPCO should be nationalized... they need to start nationalizing everything and throw those 70,000 American troops out... it's all been a gangster-extortion occupation... and bullshit war-reparations for a war the banks started...

Anonymous said...

So let me get the straight, Japan is now the responsible party? Great, I have some expenses I need to bill them due to all of the fallout. First off is about $3,000.00 US for home water filtration, my tap water is rain and snow melt and unfit for consumption. Next air filtration about $500.00 US for hepa air filters. Next I have about $1,000.00 US invested in Geiger counters to inspect the food, store or garden, most of which is to scary(radioactive)to eat. Next my home and especially my land is now hopelessly contaminated and now worthless for growing food. Oh I know they will say its low level radiation, its safe, everything is fine that's just a conspiracy theory... $400,000.00 US for my property is about right.
I could add to this list but you get the picture. As I see it Japan Inc. owes me roughly half a million dollars US.

Anonymous said...

oh man it's all about money again! Look the whole damn world looks at Japan now differently thanks to TEPCO lying blunders! and your Gov has lied to it's people too. Basically we have a couple of corrupt institutions. Does any large government body or corporation play the honest game ever?>

The actual event of the earthquake is becoming more and more interesting now. HARP?

Anonymous said...

The blame game? What about all of the nice people who will die? I for the life of me don't understand all of the fuss about Iran having Nukes when the real problem is in Japan.

arevamirpal::laprimavera said...

@anon at 11:28AM, you may get a gift certificate from Edano, but you have to go to Fukushima to spend it. See my latest post.

Bruce Hayden said...

It's simply a deal between gangsters! Exactly as done in the US between the government and corporate banks. TEPCO executives get huge bonuses
instead of jail time. Business as usual. The marriage between corporations and government is called fascism. Nothing more, nothing less. Silent violence is still violence.

Anonymous said...

I do not see how changing the management in Japan will work because they have nobody there who will bury this mess and stop the horrendous releases into the global environment. Conquered by the even more clueless US in WWII, Japan is a drone society with no imagination. They had a plutonium scattering onto the site from reactor three's hydrogen blast. Much of site's huge load of fuel has much exactly? Daiichi will never be used for anything again, and should be immediately buried. Japan really blew it at Daiichi! Nuked the rest of us downwind too. Can't believe the whole world watched and allowed this to go on and on spewing huge amounts of radiation when they could have stopped it in a week of landfilling. Humans willfully refuse to learn all nature's lessons about radiation. They have been holding hands with Madame Curie's uranium meat thinking their sweetie will somehow get less ugly. Birth defects from twelve days ago have begun to climb in Japan. When will Japan say enough is enough and bury this entire site and all the others like it around Japan loaded with bullets aimed at the Japanese genome?

Bruce Hayden said...

The explosion at reactor #3 on March 14/15 was not a hydrogen blast. Hydrogen sends up white smoke as evidenced by the blast at #1 or #2 (I forget). Number three was a black mushroom cloud
which indicates plutonium from the MOX fuel. At the moment, number 3 is so hot that they can't get a gas meter in there.

From everything I've read, which is considerable, concrete is not an option and never has been. I think it's a matter of when, not if, #3 goes it will decimate the entire country and possibly make the entire west coast of North America uninhabitable (my opinion).

All of this nonsense being put out by the Mafia/
TEPCO/government in Japan about (finally) admitting they THINK the cores have melted is a day late and a dollar short. Anyone paying attention knows that the coriums broke the containment vessels may months back. The cracks in the ground around the plant with steam rising can only indicate that some of the melted core hit the water table.

The whole government and TEPCO executives who have been lying through their teeth from day one, should be rounded up and executed. Those who are promoting the party line that everything is safe and people can return to their homes should die the death of a thousand cuts many times over. The hive-minded Japanese people who find it impossible to stand up to these cretins deserve what they get. Same with the American and European sheeple.

This is a planet-killer, just in case you thought the (ongoing) BP oil spill in the Gulf of Mexico was bad. And there's more to come. It does seem our creators are trying to kill us all. And I'm not talking Yahweh, Allah, or any of those fairy tale creations. Sitchin had it right.

If you want to see some very curious FACTS about this whole mess go to: and click on the Dimona Dozen meets.... article. It's mostly fact (especially the falsity of the quake being 9.0)
and the guy's conclusions about who caused this.
It doesn't matter if it was caused by HAARP or an atomic bomb(s), or even who did it. The fact is that EVERY nuclear reactor in the world needs to be shut down NOW-no matter what the consequences. Anything less is pure madness....

Anonymous said...

Sitchin had it right??? Okay, I'll concede he was smart, but his kooky logic sent him down a bizarre path. Nobody knows who made us-- certainly not Sitchin. If I had to use some of Sitchin's logic then many Canadian Inuit sculptures from the late 50s to the 70's would look like galactic travellers in space suits. Some of them shockingly so. His interpretation of some quirkily stylized pieces of ancient art is biased and wrong. Rather very wrong.

Also, why do his older and more advanced aliens still build and use tall rockets like our Apollo series and why are his spacemen depicted wearing the same space suits our astronauts or cosmonauts wear. You'd think seasoned space travel at speeds faster than that of light and the dodging of deadly cosmic rays would have necessitated and evolved into a different design. This alone about Sitchin's alien theories is so lame.

Bruce Hayden said...

So the human observers who created the Sumerian tablets were making things up? I'm sure every issue in Sitchen's translations are not spot on. It seems to me to be the best explanation out there. Thus, even Von Daniken is in the same ballpark. Velikovsky is all at once not so crazy.
Do some real research and stop kissin mainstream science's dogmatic ass. Better yet, don't, and we'll talk in ten years providing mainstream science's answer to cheap energy doesn't kill us all.

Anonymous said...

"So the human observers who created the Sumerian tablets were making things up? "

No, Sitchin was making things up.

Von Daniken's reputation as a con man is widely known and Velikovsky WAS crazy. I've read what all three have to say.

I don't kiss mainstream science's dogmatic ass and also don't kiss illogical science fiction ass.

Why, what's going to happen in 10 years? Nibiru supposedly coming around again? Come on man, ancient people built high platform launch pads for alien Apollo-type rockets? And the aliens wore pressurized space suits and helmets just like the ones US astronauts did on their supposed mission to the moon? Yeah, right. I don't even need to use mainstream science to prove how dumb this is.

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