The Financial Reconstruction Commission on Thursday approved the termination of negotiations on the sale of Tokyo Sowa Bank, a regional bank that failed in June 1999, to the Asia Recovery Fund L.P. of the United States.
The approval thus scrapped a broad agreement reached in June to sell the bank to the U.S. fund, set up by W.L. Ross and Co.
Tokyo Sowa will be the first among five failed second-tier regional banks placed under control of government-appointed administrators to have its planned sale derailed.