Date: March 10, 2009
Statement by the Governor Settlement of Lawsuits between the Deposit Insurance Corporation of Japan and Shinsei Bank
1.	The Share Purchase Agreement concerning the transfer of shares of the former Long-Term Credit Bank of Japan, Ltd. (former LTCB) concluded in February 2000 provides that the Deposit Insurance Corporation of Japan (DICJ) shall compensate Shinsei Bank when prescribed conditions are fulfilled in such cases as: (1) debt or damages of the former LTCB that had not been determined as at the date of share transfer have been determined later; and/or (2) the statement of DICJ that the former LTCB had no unpaid taxes as at the date of share transfer has turned out to be false.
2.	DICJ was sought compensation in eight cases by Shinsei Bank based on these provisions, and three lawsuits were filed against DICJ in the eight cases. More specifically, one was a lawsuit claiming for the amount equivalent to the cash settlement paid to EIE International Corporation and its related parties, and the other two were claims for the amount of back taxes paid by Shinsei Bank after the transfer of shares of the former LTCB.
3.	There was a disagreement between DICJ and Shinsei Bank about whether all these cases should be compensated in light of the Share Purchase Agreement. DICJ considered it necessary to obtain objective judicial rulings in the lawsuits.
4.	The Tokyo District Court recommended the settlement in which DICJ would pay ¥11 billion to Shinsei Bank out of total claims amounting to approximately ¥14.95 billion to conclude these three lawsuits.
5.	The recommendation of the Tokyo District Court has taken into account the DICJ's argument that claims of Shinsei Bank included those not eligible to compensation. It also has economic rationality. Therefore, DICJ has accepted the recommendation and concluded all the three lawsuits.