Government to put 2 trillion yen of tax money into bank

The government on June 10 formally decided to inject 1.96 trillion yen in public funds to help rebuild the financially struggling Resona Bank.

Resona, the nation's fifth-ranking banking group established last March, will carry out its rebuilding plan under control of the government which will have a two-thirds stake in the bank.

The rebuilding plan includes sharp wage cuts, a dismissal of more than 1,800 employees, higher lending rates, and disposal of bad loans. (end)