May 15, 2011

Markets Rattled by TEPCO concerns

Who is going to pay the cleanup damages from the Fukushima disaster? 

"If Tepco fails, banks would lose everything. Banks would thus have no choice but to accept that if asked by the government," said Hideyuki Ishiguro, investment strategy supervisor at Okasan Securities.

Chief government spokesman Yukio Edano said that "the public will not support" the injection of public funds into the company without some kind of debt waiver by Tepco's bankers. 

The government plan to shore up TEPCO called for other nuclear operators pay into a fund to keep TEPCO solvent. 

Bank of America has estimated that costs of claims associated with Fukushima could range from 2.5 to 4 trillion Yen or $30 to 50 billion USD. 

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