[4] Daiwa closed its United States operations in 1996, and eventually pulled out of overseas banking entirely in 1998.

Daiwa and Asahi consolidated operations on 1 March 2003, with most of their assets combined to form Resona Bank.

The bank had proposed to maintain its capital adequacy ratio above the legal limit by factoring in deferred tax assets.

Because the bank's profit outlook was so dim, Resona's auditor refused to certify the company's financial statement if the deferred tax assets were included.

[9] The Resona case threatened to cripple the entire country's financial system, since the other major banks were also counting on deferred tax assets to maintain their capital adequacy ratios.

[1] Hosoya initially resisted taking the appointment to head Resona, saying in a news conference held on 30 May 2003, "I decided to accept the offer as I realized that stabilizing the financial system is the highest priority for the Japanese economy.

"[1] Under Hosoya, the bank's new management immediately set about to reduce Resona's non-performing loans (NPLs).

As a result, Resona's management announced a plan to, over the next 10 years, return to the government ¥868 billion of the ¥3 trillion in public funds it has received.