Japan: Govt buyout of TEPCO pitched / Public-funded takeover ...(bailout & nationalization)

Yomiuri Shimbun ^ | 03/30/11

[TigerLikesRooster]

Govt buyout of TEPCO pitched / Public-funded takeover could help utility survive huge damages bill

The Yomiuri Shimbun

The government might place Tokyo Electric Power Co. under effective state control to help the utility survive if it has to pay massive amounts of compensation to businesses and individuals affected by its crippled Fukushima No. 1 nuclear power plant, according to government sources.

A plan proposed by some members of the government would involve the government and other state entities acquiring a majority stake in TEPCO to help the beleaguered firm pay the damages, the sources said.

One government source said the plan was proposed to secure electric power supply for areas served by TEPCO "by temporarily nationalizing [TEPCO] first, and then rehabilitating it and raising capital so it can be privatized."

[TigerLikesRooster]

TEPCO is broke.

[TigerLikesRooster]

P!

[kidd]

TEPCO may lose a ton of money. Solutions:

1. Raise rates
2. Consolidate debt, sell off assets
3. Introduce socialism

Why is the spread of socialism always the answer for journalists?

[dfwgator]

Privatize gains, socialize losses. What a plan!

This is why we have anti-trust laws, so that companies don’t get too big, so that we the taxpayers have to bail them out when their chestnuts are in the fire.

[swain_forkbeard]

Japan should not bail out TEPCO. They should let it go insolvent, stock price zero. Sell off any assets to pay creditors.

Either way, the Japanese government will be left holding the bag. But every investor in TEPCO should lose every yen.

[Wolfie]

This will surely encourage responsible behavior in the future, you betcha.

[Pelham]

“This is why we have anti-trust laws, so that companies don’t get too big, so that we the taxpayers have to bail them out when their chestnuts are in the fire.”

You forgot to add the ‘irony’ tag...