Financially troubled Chuo Mitsui Trust & Banking Co. has entered the final phase of talks to come under the management of Sumitomo Mitsui Banking Corp., sources said Friday.
Sumitomo Mitsui is considering a proposal to recapitalize Chuo Mitsui by buying tens of billions of yen worth of new shares, the sources said.
Chuo Mitsui's financial health has been seriously crippled by huge loan-loss charges and latent losses on securities holdings that were registered when new mark-to-market accounting rule were introduced in Japan.