"The Sokagakkai has again been caught with their pants down in yet another banking scandal. The Long Term Credit Bank of Japan was one of the strongest and most relied upon bank for financing huge mega-ventures such as the Rockefeller Center purchase. But now, due to political meddling of the Clean Government party (Sokagakkai's new party), the JDP and LDP of Japan, it is now going fast down the tubes.
Sokagakkai has been reported to have invested as much as $7.5 Billion in the LTCB, hoping to rake in huge profits from the bank's many large loans which were due to mature this year. However, because of the Asian economic problems, over $150 Billion scheduled to be paid back has been in default. Including the loan which was made to purchase the Rockefeller Center in NY. All three political parties have invested very heavily in the LTCB. As a result, the scandal that would be uncovered by the complete default of LTCB would devastate all of the political parties involved.
On September 22, a summit meeting was held, and executives of the ruling Democratic Party (LDP), the Ministry of Finance and the Depository Insurance Organization (DIO) decided the final policy about what to do with LTCB. Their conclusion was: In an amendment bill of the Financial Recovery Act, the proposals by the opposition parties – Japan Democratic Party and Clean Government Party – will be incorporated.
Their intention was to use taxpayer money before finishing the amendment bill to prevent the dissolution of the huge financial scheme.
The Clean Government Party of Sokagakkai had its own reason not to let LTCB go bankrupt. It was that Sokagakkai, the largest religious group in Japan, that owns $7.5 billion worth of LTCB bonds. One LDP executive said, "Sokagakkai has been investing in bonds without specific designations by the investors. Today, their amount of investment in LTCB bonds has reached $7.5 billion while Mr. Sugiura was the Chairman of LTCB"
Finance Minister Miyazawa was the one who introduced Mr. Sugiura to Sokagakkai. The MOF decided to protect the investors, but when they pay back the bonds, Sokagakkai will have difficulty in receiving it because their investment has no specific names of investors. If this happens, Sokagakkai's investment in LTCB bonds will be revealed. The Peace Party which is based on Sokagakkai will be in the same position as LDP and JDP which are afraid of revelation of scandal.
Sokagakkai is expected to come through looking quite clean since they are accustomed to involvement in such financial/political corruption. The technique they use is simple: make sure you have plenty of other people/groups invloved in case something blows up, and remind them that if Sokagakkai goes down as a result of the scandal, then they will all suffer.
As expected, the political parties will all stick together in mutual protection. In this way, Sokagakkai and their Clean Government Party will have their way, along with the LDP and JDP, and taxpayer money will be used again to pay for the damage they have caused. The Sokagakkai again walks away unscathed as usual, with the LDP and JPD (not to mention a huge wad of cash) in their hip-pockets.
Like the rich investors in the U.S. in 2008, the SGI is bailed out at the expense of the middle class and poor. They will always proclaim loudly, "We are the defenders of the oppressed" but it will be business as usual." --- Source unknown