Hanzawa Naoki (半沢直樹)

TOKYO CHUO BANK CHAIRMAN'S OFFICE

Hello.

Director Kunimatsu of the Financial Services Agency is on the line.

I'll take the call.

Hello. This is Nakanowatari.

How have you been, Director?

Yes.

Yes.

FSA inspection...

did you say?

TOKYO CHUO BANK OPERATIONS DEPARTMENT 2

Almost a year had passed since Hanzawa Naoki was promoted from Tokyo Chuo Bank,

Osaka Nishi Branch to Operations Department 2, the nucleus of Headquarters,

otherwise known as the elite unit where the cream of the crop gathers.

At one time, Hanzawa was blamed for the 500-million yen loan mishap

and was about to lose his future as a banker.

However, he cleared his name brilliantly and

earned his current position.

- Good morning. - Good morning.

All right. We'll aim for 10 minutes as usual. Let us begin.

Hanzawa delivered outstanding results with tremendous energy, and

had come to make his presence known at the bank.

Everything appeared to be going smoothly, however...

Hanzawa, do you have a minute?

It's him again.

Your fan, Executive Director Owada, sent word that he'd like to have dinner with you.

I'm fully aware that you dislike that kind of socializing.

But this is the third time he's asked.

I'm starting to run out of excuses.

I hate to ask, but do it this one time as a favor to me.

Deep inside Hanzawa's heart,

black embers of hatred were smoldering.

I tell you, there's no other screw like this anywhere else.

With this screw, we can get back on our feet again.

You're the one who said you'd continue to finance us!

Please let go!

EMERGENCY BOARD OF DIRECTORS' MEETING

From the beginning of next month,

an FSA inspection will be conducted at our bank.

Financial Services Agency (FSA) Inspection

is an examination conducted by inspectors from FSA

to ensure that the bank is conducting its business properly

and that there are no problems with the loan customers.

If a significant problem should come to light at that time,

the bank would receive stern orders to improve business operations.

If that happens, the bank would lose credibility

and the infrastructure of the business itself could be shaken.

The problem is the loan loss provision.

If we should end up having to come up with the loan loss provision,

the operation of our bank itself could be shaken.

To ensure that there was no mistake in our credit judgment of the borrowers,

I want you to investigate thoroughly once more.

With only 2 weeks to prepare for the inspection, I don't know how much we can do.

Can you possibly ask them for more time?

At this rate, our normal duties will...

Complaining about what's been decided already won't resolve anything.

This is precisely the time we need to unite

and overcome this crisis.

Please rest assured, Chairman Nakanowatari.

Looks like upper management was in quite a stir at the emergency board of directors' meeting.

- Is it something that affects the whole bank? - Probably.

Hey, Hanzawa. Are you listening?

At any rate, no matter happens at the top, we can only work on the job we have.

You're indeed the ace of Operations Department 2.

You think differently from us commoners.

I'd better get going. I've been called over to Iseshima Hotel.

Oh my, the white hope of Corporate Finance is quite busy, huh?

Corporate Finance Dept. Assistant Manager Tokieda Takahiro

Hanzawa, don't run out of steam going too fast.

You too, Tokieda.

By the way, have you seen Kondo lately?

No, not since we celebrated when I first got here.

He looked pretty busy.

Kondo's New Workplace Tamiya Electric Accounting Dept.

I hear he's struggling quite a bit at Tamiya Electric.

Is that right?

What do you think about asking him out for a drink tonight?

I'm afraid I have a minor business to attend to tonight.

Oh, really?

Hanzawa-kun, what are your thoughts on the current state of our bank?

To be honest, I fear for it.

The merger of 12 years ago was a joint merger outwardly.

However, once you look inside,

people from the former Tokyo Daiichi Bank accounts for practically all the major positions.

It was a bitter pill to swallow for all of us from the former Sangyo Chuo.

But Sir, you're up there.

I'm a mere Executive Director.

As long as Nakanowatari-san is sitting in the Chairman's seat,

we won't see the light of day.

Hanzawa-kun.

Won't you aim for the top with me?

Let's regain the prestigious days of the former Sangyo Chuo with our hands.

There's no other sake like this Tobihime.

It's sake brewed in Kanazawa. Have you ever tried it?

Ever since I first had it when I was assigned to Kanazawa Branch, this is the only sake I drink.

As I recall, you're originally from Kanazawa, aren't you?

Really? That's quite a coincidence.

That must mean you and I were destined to meet, huh?

My family in Kanazawa is

operating a small factory called Hanzawa Screws.

Screws?

Is that so?

Well, times are hard now.

Operating a factory must be tough.

But I'm sure your parents are heartened by the fact that

you've become such a respected banker.

My father...

passed away 25 years ago.

Dad!

Oh, is that right?

Weren't you still a child?

I was in the 2nd year of middle school.

You must've gone through a lot of hardship.

Hanzawa-kun, if there's anything I can do to help,

feel free to ask me anything.

Let's work together to

make Tokyo Chuo Bank a better bank.

Hanzawa-kun.

12 billion?!

Loss from investment failure has been confirmed.

You mean Iseshima Hotel?

But didn't we give them a loan of 20 billion just the other day?

Investment Failure To incur a loss from investments, such as stocks.

Torieda, who handled this loan, is your peer, right?

Yes, although he's originally from Tokyo Daiichi Bank.

Unfortunately, he's been removed from this case.

Operations Department 2 Manager NAITO HIROSHI

Hanzawa.

I want you to take charge.

I want you to come up with measures to cover the loss of 12 billion

as well as a restructuring plan for the hotel as soon as possible.

Wait a minute please.

In that case, it's more fitting for the Investigation Department to take over. Why me?

- It's an order. - Order?

Whose order? Yours?

It's the Chairman.

Why the Chairman?

I have no idea. However, perhaps he thinks highly of you

for brilliantly recovering the loss of 500 million at Osaka Nishi Branch

which was thought to be an impossible task.

There's a 2-digit difference between 500 million and 12 billion.

Even so, we need you to do it.

We're getting an FSA inspection in 2 weeks.

They'll be targeting Iseshima Hotel for sure.

Surely you're not telling me to...

Consequently, you'll be taking the lead in the FSA inspection.

If they should determine that there's a concern

collecting the loan from the troubled Iseshima Hotel,

our bank will have to come up with an enormous amount of money to compensate for it.

Loan loss provision...

would amount to more than 100 billion.

If that happens, our bank would collapse, and

the Chairman will be fired.

There's only 2 weeks left until the FSA inspection.

Come up with a plan to cover the 12 billion-yen and a restructuring plan for the hotel.

You'll take it on, won't you?

Hanzawa!

Deputy Manager Hanzawa from Operations Department 2 is here.

Come in.

I'm counting on you.

In the event FSA determines that

Iseshima Hotel, which sustained an investment failure of 12 billion yen,

Financial Services Agency (FSA)

Tokyo Chuo Bank

Loan

Iseshima Hotel

Troubled Borrower

Classifies as Effectively Bankrupt Borrower

Reserve Fund

Notification to Set Aside Reserve Fund

Loan Loss Provision

is a troubled borrower,

the so-called effectively bankrupt borrower,

in its investigation,

Tokyo Chuo Bank will be notified by FSA

to set aside as reserve fund an enormous amount of money

in case that borrower goes bankrupt.

This is called a loan loss provision.

The entire amount of the loan loss provision

Loan Loss Provision

Loan Loss Provision

= 150 Billion Yen

300 Billion Yen

Anticipated Earnings

Halved

Loan Loss Provision

150 Billion Yen

will be appropriated to expenses.

Supposing that the loan loss provision for Iseshima Hotel is 150 billion,

if Tokyo Chuo Bank was anticipating an annual earning of 300 billion yen this year,

it would have its earnings cut in half instantly,

causing its stock value to plummet and

shaking the very foundation of its operation.

Iseshima Hotel's Classification as an "Effectively Bankrupt Borrower

Fall of Tokyo Chuo Bank

...that's what it means.

With only 2 weeks remaining until the FSA inspection,

coming up with the most effect plan to

Restructure Iseshima Hotel

and