For example, commissions on relatively large trades are to be deregulated next April, with freely set fees for smaller trades following in 1999. Since its failure, the Finance Ministry and the company's creditors have recruited a number of other financial institutions to share the burden of the bankruptcy and to limit losses to Sanyo Securities' customers. Nikko Securities is likely to make a supplemental payment as well. In the immediate aftermath of the bankruptcy filing, Sanyo Securities at least was able to meet its obligations to customers, who reportedly withdrew as much as 10 percent of their holdings in a matter of days. Most of the brokerage's activities were suspended.
Some analysts imply that the firm faces eventual liquidation.
Bank of Tokyo-Mitsubishi president Tasuku Takagaki has suggested, however, that a merger still might be in store for Sanyo Securities. The company also could issue new shares, essentially starting over. Analysts see Sanyo Securities' bankruptcy as marking a watershed in the role of the Finance Ministry in handling the financial sector's multiple problems. Not only did its merger plan fail to work, but Sanyo Securities also rejected the option of a bankruptcy action under the guidance of MOF, preferring to act on its own. The depleted state of the SDCF, moreover, highlights the weakness of the safety nets in Japan that are supposed to protect customers of financial institutions in the event of an insolvency.