• Kyodo News

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The Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui Banking Corp. and the state-owned Development Bank of Japan are negotiating to jointly set up a corporate rehabilitation fund as early as the end of this month, industry sources said late Friday.

The unusual collaboration among rival megabanks is aimed at facilitating their business clients’ revival and reorganization, they said, adding that the fund is projected to initially amount to some ¥30 billion and be increased to the ¥100 billion level by inviting more investors.

The fund is designed to invest in and send executives to financially distressed firms to help rebuild them, and earn profits by selling their stocks after rehabilitation.

Major trading house Mitsubishi Corp. is expected to join the fund, while another megabank, Mizuho Financial Group, is being sounded out about taking part, according to the sources.

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