October 23, 1990.
Saionji Main Family Residence, study.
The rain outside the window had started in the afternoon and still hadn't stopped.
The stone lantern in the courtyard had been washed dark by the rain, and a string of fine water lines hung from the eaves, dripping onto the moss with a faint sound.
Satsuki sat behind the desk.
A copy of the Nihon Keizai Shimbun was spread out on the desk. In the bottom right corner of the third page was an inconspicuous piece of news. A medium-sized real estate company in Kansai had filed for debt restructuring.
The headline was small, and the word count was low. Tucked between several news items about corporate layoffs, it looked like a black bean dropped into gravel.
She glanced at it twice, then folded the newspaper.
Fujita Tsuyoshi stood to the side, replacing the cup of black tea that had already gone cold.
Today's tea was Assam, the deep red liquid swaying slightly in the cup, its aroma rich.
"Young Miss."
Footsteps came from outside the door.
Fujita turned and opened the study door.
Endo walked in.
He carried the scent of rain, and Fujita took his black overcoat, revealing the dark gray suit underneath.
His tie was knotted perfectly, though the dark circles under his eyes were heavier than last week.
He was holding a thick file in his arms.
The cover was dark blue, with a white label stuck to the top right corner: "Preliminary Compilation of Sumitomo-Related Capital Flows."
Endo stopped in front of the desk and bowed slightly.
"Young Miss."
Satsuki picked up the black tea and took a sip.
Fujita poured tea for Endo, then stepped back half a step to Satsuki's side.
Endo didn't drink immediately.
He placed the thick file on the desk, his fingertips pressing against the edge of the cover, his voice kept very flat.
"There's movement from Sumitomo."
Satsuki looked at him.
Endo opened the first page.
"Over the past two weeks, the stewards of the Sumitomo main family have been in frequent contact with the directors of the Hakusuikai."
"According to the S.A. Security Department investigators, there are three locations where they have met."
"They are a members-only ryotei in Osaka's Kita Ward, a private club in the former foreign settlement of Kobe, and an old inn in Akasaka, Tokyo."
He pushed an itinerary toward Satsuki.
"The contacts include the current secretaries to the presidents of Sumitomo Metal, Sumitomo Chemical, and Sumitomo Electric, as well as two retired advisors from Sumitomo Bank."
Satsuki lowered her head and scanned it.
Most of the names on the itinerary were written briefly, indicating only their surnames and positions. However, the time, location, and accompanying personnel were noted in great detail.
"What about Sumitomo Yoshio?"
"He hasn't appeared in public himself," Endo said. "But at one o'clock this afternoon, he sent a message."
Endo paused for half a second.
"He said the time has come. He hopes the Saionji Family will fulfill the agreement made in Karuizawa."
The study fell silent.
The sound of rain fell outside the window like a thin curtain.
Satsuki didn't answer immediately.
She placed the teacup back on the saucer and gently rubbed her fingertips along the handle.
"How is Sumitomo Bank doing lately?"
Endo's eyes flickered slightly.
He seemed to have guessed that Satsuki would ask this, so he quickly flipped to the middle of the report.
"The problem is here."
He pulled out three pages and spread them out.
"Sumitomo Bank's real estate financing in Kansai has seen at least seven abnormal rollovers in the past six weeks."
"Loans that should have been collected at the end of September have been rolled over twice in a row. The extension periods range from thirty to ninety days, the interest rates were not raised according to risk, and the collateral valuations were not re-verified."
Satsuki's gaze rested on the amount in the first line.
"Kansai real estate?"
"Yes."
Endo nodded.
"Several real estate companies in Osaka, Hyogo, and Nara have run out of cash flow. Under normal risk management, they should have been listed as non-performing loans in September."
"But Sumitomo Bank still provided bridge funding."
He handed over another capital flow chart.
The paper was densely covered with arrows. Several company names were circled in black boxes. A line wove back and forth in the middle, eventually flowing to the same name: Itoman.
Satsuki looked at those three characters, her eyelashes drooping slightly.
Endo continued, "The trading, real estate, and associated investment companies under Itoman all have multiple overlaps with the Kansai real estate capital flow."
"On the surface, it's trade settlement, land brokerage fees, and warehouse receipt financing, but the actual capital return path is chaotic."
"Several payments bypassed the standard approval channels."
"The source of the signatures..."
He paused.
"...is from the executive secretary's office of Sumitomo Bank's Osaka main branch."
Fujita stood to the side, his eyes darkening slightly.
The study was quiet for a few seconds.
A shishi-odoshi sounded from the courtyard.
The sound of the bamboo tube hitting the stone was very short, immediately covered by the sound of the wind.
Endo pushed another excerpt toward her.
"Additionally, there is unrest within the Sumitomo manufacturing companies."
"The financial heads of Sumitomo Metal and Sumitomo Chemical each expressed their concerns to the main family through private channels last week. The wording was very euphemistic, but the meaning was clear. They are afraid that once the bad debts at the bank explode, the credit ratings of the entire Sumitomo group will be implicated."
"The situation at Sumitomo Electric is even more serious. Their executive director personally went to Yoshio's private residence the day before yesterday. He stayed for forty minutes."
"Especially regarding overseas financing. Now that the cost of opening US dollar letters of credit is rising, if something happens to Sumitomo Bank, the industrial companies will be dragged into the mud together."
Satsuki didn't speak.
She looked at the capital flow chart, her gaze shifting from Itoman to the Sumitomo Bank Osaka main branch, then falling back to the notation for the Hakusuikai board of directors.
Memories from her previous life flipped open in her mind.
That should have been one of the festering sores left over from the bubble era.
A trading company that, in the heat of the boom, became embroiled in real estate speculation, stock manipulation, and high-risk financing.
The bank's top management thought that as long as they held on for a while longer, land prices would rise, stock prices would rebound, and the holes on the books could be covered by the next round of bubbles.
But the bubble burst.
Land collateral depreciated, affiliated companies lent to each other, and off-book funds, illegal loans, and profit transfers were dragged out one by one.
In the end, the newspapers were filled with apologies, resignations, investigations, and responsibilities.
But it was still too early.
Even if Satsuki's arrival had influenced many things, this incident would not happen before 1991.
Itoman had not yet become a headline.
Sumitomo Bank had not yet managed to complete the decoupling.
The managers of the Hakusuikai were still trying to delay with rollovers and bridge funding.
This was the cleanest window for entry.
Satsuki raised her head.
"What about that memorandum from Karuizawa?"
Fujita immediately turned and walked toward the safe against the study wall.
The combination dial was turned, and the metal door opened.
A moment later, he took out a sealed dossier and handed it to Satsuki with both hands.
The seal of the dossier was affixed with the Saionji Family's wax seal.
Satsuki opened it and took out the pages inside.
The paper was thick, and the ink was clear.
At the very bottom was Sumitomo Yoshio's signature and personal seal.
She read through it item by item.
"—The Sumitomo main family acknowledges the Saionji Family's leading role in the operation to purge the Hakusuikai."
"—Sumitomo Bank's non-performing loan stabilization funds are to be handled via USD transfers, with interest and risk fees calculated separately."
"—When disposing of peripheral assets related to Sumitomo's semiconductors, precision materials, and chemicals, the Saionji Family has the right of first refusal."
"—The Sumitomo main family opens its Kansai trade channels to Saionji Trading under a private name."
"—If the main family fails to regain control, Sumitomo Yoshio will hand over a portion of his family trust's income rights as collateral."
Satsuki finished reading, her fingertips pausing for a moment on the line "right of first refusal."
Endo watched her movements and spoke.
"Young Miss, there is one thing I think is necessary to mention."
"Speak."
"The foundation of the Sumitomo family is much deeper than those upstarts in Kanto. Yoshio is coming to us for help now, but the managers of the Hakusuikai are no pushovers."
"They have been operating in Osaka for forty years. They have their people everywhere, in banks, trading companies, and the political world in Kansai."
Endo's voice didn't change pitch, but his speaking speed slowed by a beat.
"Once we intervene too deeply, there is a high probability that we will offend Sumitomo Bank, the Osaka financial world, and the Kansai real estate circle all at once."
He glanced at the capital flow chart on the table.
"Especially those signatures from the Osaka main branch. Once we touch that, the other side will definitely counterattack."
Satsuki's expression was calm.
She closed the memorandum.
"Endo, what do you think the people in the Hakusuikai fear most right now?"
Endo looked up.
"First, they are afraid that the Special Investigation Department will get their hands on the ledger in advance."
"There's nothing to say about that. Once the ledger is in the hands of the Special Investigation Department, they will be finished immediately."
Satsuki held up one finger.
"Second, they are afraid that the presidents of the manufacturing companies will collectively defect to the main family."
"The Hakusuikai can be considered a parliamentary system. If the manufacturing presidents defect, it means their votes in the Hakusuikai become void."
The second finger fell.
"Third, the overseas USD channel is controlled by us."
"This is our greatest advantage. We have USD, a lot, a lot of USD. And Sumitomo Bank needs USD."
The third finger tapped lightly on the table.
"When these three things happen together, the Hakusuikai will be forced from active delaying to passive explaining."
Endo didn't speak.
He already understood.
Just as Satsuki had said before, this was not a simple rescue.
Once Saionji intervened, they would reach into the cracks of Sumitomo's ledgers, supply chains, and board of directors.
The Sumitomo Family becoming a vassal of the Saionji Family is not just a simple threat.
By the time they realize it, the Saionji Family's mark will be left on all the key positions.
Satsuki picked up a pencil and wrote three lines on a blank notepad.
"The first layer."
She pushed the notepad toward Endo.
"Send the SIS audit team to Kansai, under the guise of 'assisting the Sumitomo Main Family in settling old accounts,' and make the Sumitomo Main Family cooperate."
"First, access Itoman's trade records, the transaction logs of Sumitomo Bank's Real Estate Finance Department, and the accounts of those three Kansai real estate shell companies."
"Don't rush to dig up everything."
"First, secure the original vouchers, signature chains, and capital flow paths."
"Especially those payments from the high-level secretariat of the Osaka Main Branch."
Endo picked up his pen and recorded it quickly.
His pen tip paused for a moment.
"In name, it's settling old accounts. In reality, it's seizing the source of evidence."
"Correct."
Satsuki did not deny it.
"The second layer: dividing the industrial presidents."
She looked toward the door of the study.
"Is Father home tonight?"
Fujita replied in a low voice, "The Family Head is expected to return to the Main Residence at six o'clock."
"Ask him to send private dinner invitations to the presidents of Sumitomo Metal, Sumitomo Chemical, and Sumitomo Electric Industries in his capacity as an old family friend."
"Send the invitations in the name of the Saionji Main Family. Let them know that the Family Head is personally intervening, so it carries enough weight."
Satsuki's tone was unhurried.
"Make the theme sound milder."
"Let's set it as an 'Industrial Credit Protection' seminar."
When Endo heard these words, a flash of understanding passed through his eyes.
The theme sounded like elders closing the doors to have tea and reminisce.
But every manufacturing president who received the invitation would understand.
This was to make them choose a side before their bank credit collapsed.
"The third layer."
Satsuki picked up her black tea cup but didn't drink.
"Saionji Trading enters Kansai."
Endo's expression became slightly solemn.
The people from Saionji Trading haven't been transferred there long. Are they already going to be involved in an event of this magnitude?
Well, it's fine. The personnel transferred are the elite of the elite, so I can only ask them to work hard now.
Satsuki continued, "Saionji Trading needs to set up a temporary office in Osaka within three days."
"In name, it is to assist Sumitomo-affiliated enterprises with foreign trade settlements and import letters of credit."
"The actual work is to figure out the overseas settlement channels for the entire Sumitomo supply chain."
"Have the SIS assist them in the investigation. Who is using which bank's letter of credit, which shipping routes they are taking, whether the currency is US dollars or Deutsche Marks, and whether there are any third-party agents in between. File everything."
She looked up at Endo.
"The Sumitomo Bank brand is not urgent for now."
"The time is not yet ripe."
"Moving against the bank now will alert the Ministry of Finance, draw the attention of every zaibatsu in Japan, and make the Sumitomo Main Family turn completely hostile."
"What I want right now are the peripheral enterprises in the Sumitomo chain for semiconductor materials, precision metals, special chemicals, and electrical engineering."
Endo's Adam's apple bobbed.
He looked down at the words he had recorded.
Sumitomo Bank is the ultimate goal.
But not now.
The prey actually on the table right now are the industrial fringes of the Sumitomo group that are tied down by bank credit.
They have technology, personnel, and a position in the supply chain.
Once the bank's bad debts implicate the entire group, the presidents of these enterprises will be more anxious than anyone else to find new capital shelter.
The Saionji Family only needs to offer an umbrella when they are most afraid.
Once the industrial chains are all in hand, once the US dollar channels are fully controlled, and once the favors owed by the Sumitomo Main Family are deep enough, that is when we talk about the banking license.
Endo was silent for a few seconds.
"Sumitomo Yoshio might go back on his word."
Satsuki looked at him.
"After he borrows our power to suppress the Hakusuikai, he may not be willing to fulfill the subsequent conditions."
Endo said it very bluntly.
"The Sumitomo Main Family is, after all, the Sumitomo Main Family. They are bowing their heads because they have no other choice right now. Once they are back on the table, they may not necessarily acknowledge this memorandum."
Satsuki smiled lightly.
The smile was very faint, like the surface of black tea being touched by candlelight.
"He can, of course, go back on his word."
She put the Karuizawa memorandum back into the file.
"It's just that by then, the files will be in our hands."
"The capital channels will be in our hands."
"The list of industrial presidents will be in our hands."
"The US dollar letters of credit will also be in our hands."
Satsuki raised her eyes.
"If he wants to go back on his word, he can first take these things back from the Saionji Family one by one."
Endo lowered his head.
"Understood."
Fujita stepped forward at this moment and placed a business card on the edge of the desk.
"Eldest Miss, the business card of the Sumitomo envoy."
Satsuki picked it up and took a look.
The business card was old-fashioned, the paper thick, and the font restrained.
Sumitomo Main Family Steward. Kawase Masahiro.
Satsuki remembered this name.
That night in Karuizawa, when Sumitomo Yoshio and his son went up the mountain, this person was in the accompanying convoy.
A black umbrella, a gray kimono coat, and he would always lower his head to confirm the other party's reaction before speaking.
"Is he in Tokyo?"
"Yes," Fujita said. "At an old inn in Akasaka. He has been waiting for three hours."
"He said if the Eldest Miss is willing to see him, he can rush over immediately."
Satsuki put the business card back on the table.
"No."
Endo looked up.
Satsuki looked at him.
"You go."
"Give him one sentence."
Endo closed his notebook and waited for the rest.
Satsuki's voice was very soft.
"The Saionji Family will assist the Sumitomo Family in restoring the glory of the nobility."
Fujita lowered his eyelids slightly.
This sentence was so decent that it was almost impossible to find fault with it.
But Endo heard the nuance within it.
Assist the Sumitomo Family.
Not assist Sumitomo Bank.
And certainly not assist the Hakusuikai.
Satsuki continued, "Draft the list for the Kansai Special Audit Team tonight."
"Draw personnel from the SIS, Legal, and Trading divisions."
"The head of the audit team must understand bank accounts, and the deputy must understand trade settlements."
Endo recorded it quickly.
"Fujita."
"Yes."
"Tomorrow morning, have Dojima's people accompany them. Don't be high-profile. Keep the number of people small, and ensure their records are clean."
"Yes."
"The Saionji Trading temporary office in Osaka must be opened within three days."
"Do not choose an overly conspicuous building for the location. It is best to be near Yodoyabashi, to facilitate contact with banks and trading firms."
Endo nodded.
"I will arrange it."
"Father's invitations are to be sent in the name of the Main Family."
Satsuki glanced at the clock on the wall.
"Before five-thirty, send the list and the draft invitations to Father's study."
"The dinner time... set it for this Friday."
Endo closed his notebook.
"Understood."
---
At Six-fifteen.
When Shuichi returned to the Main Residence, the rain had already eased.
There were two extra black umbrellas in the umbrella stand at the entrance, and the tips of the umbrellas were still dripping water.
Fujita was waiting for him at the end of the corridor.
"Family Head, the Eldest Miss is in the study."
Shuichi took off his coat and nodded.
"Sumitomo matters?"
Fujita didn't say much.
"Yes."
When Shuichi walked into the study, Satsuki was placing several invitation drafts on the table.
He looked at the title.
Private Dinner for Industrial Credit Protection.
Shuichi sat down in the chair and picked one up.
"Sumitomo Metal, Sumitomo Chemical, Sumitomo Electric Industries."
"Yes."
Satsuki pushed the list over.
"They have already begun to worry that bank bad debts will drag down industrial credit. It is most appropriate for Father to step in now."
Shuichi glanced at his daughter.
"What do you want me to do?"
"Just invite them to have a meal."
Satsuki smiled.
"Chat about letters of credit, chat about overseas financing, and chat about how the manufacturing industry can preserve its reputation in this era."
Shuichi looked at her gentle and proper expression and suddenly sighed.
"You child."
He picked up his fountain pen and wrote down a few more polite phrases next to the invitation draft.
"The Sumitomo family is, after all, an old acquaintance, so we cannot be too sharp on the surface."
"That is why I need Father."
Satsuki answered quickly.
Shuichi was a bit helpless at her coaxing, but the corners of his mouth still lifted.
"Understood."
He lowered his head to revise the invitations.
"I will arrange the dinner on Friday."
"Thank you, Father."
---
At Eight-forty in the evening.
Endo left the Main Residence.
The car lights outside the courtyard lit up for a moment and quickly disappeared into the mist and rain.
The study became quiet again.
Fujita collected the empty tea cup and replaced it with a small desk lamp.
The warm yellow light fell on the desk.
Satsuki sat alone behind the desk and spread out the capital flow chart that Endo had left behind.
Sumitomo Bank Osaka Main Branch.
Hakusuikai Board of Directors.
The three names were separated by several complex arrows, intertwined with each other.
Satsuki picked up a red pen.
The pen tip paused on the paper for two seconds.
Then, she circled the three names one by one.
The red ink was fresh, shining slightly on the paper.
She looked at this chart and then opened the Karuizawa memorandum next to it.
The rain outside the window had stopped.
The last drop of water from the eaves fell, hitting the stone basin with a very faint sound.
Satsuki wrote four words in the corner of the capital flow chart.
Kansai Opening Move.