Talks broke down Wednesday between the Financial Reconstruction Commission and a consortium led by leading Internet investor Softbank Corp. on buying the defunct Nippon Credit Bank, the FRC said.

With the breakdown, the consortium's priority rights to negotiate the purchase of the long-term credit bank have expired, said the FRC, the regulatory body of Japan's banking industry.

In late February, the FRC announced it had given the consortium -- which also includes leasing company Orix Corp. and nonlife insurer Tokio Marine & Fire Insurance Co. -- first shot at negotiating the purchase.