Yasuda zaibatsu

Yasuda zaibatsu ((安田財閥) was a financial conglomerate owned and managed by the Yasuda family. One of the four major zaibatsu, it was founded by the entrepreneur Yasuda Zenjiro.

Origins

Yasuda Zenjiro moved to Edo at the age of 17 and began working in a money changing house.cite web | title=Yasuda, Zenjiro|url=http://www.ndl.go.jp/portrait/e/datas/343.html| date=2004] In 1863, he started providing tax-farming services, and greatly magnified his wealth by buying up depreciated Meiji paper money that the government subsequently exchanged for gold.cite web | last = Morck | first = Randall | coauthors = Nakamura, Masao | title=A Frog in a Well Knows Nothing of the Ocean: A History of Corporate Ownership in Japan|url=http://pacific.commerce.ubc.ca/nakamura/nakamura_nber_2005.pdf| date=2004-07-14] He quickly began to amass newly available capital, establishing the Third National Bank in 1876 and forming the Yasuda Bank (later known as the Fuji Bank) in 1880, the center of the Yasuda zaibatsu.

Yasuda consolidated his empire in banking and finance, specializing in backing small and medium-sized traders and industrialists. In 1880, Yasuda founded the Yasuda Mutual Life Insurance Companycite web | last = Dominici | first = Gandolfo | title=From Business System to Supply Chain and Production in Japan|url=http://www.unipa.it/gandolfodominici/Business-sys-SCM2003.pdf| pages = p. 13 | date=2003] (now Meiji Yasuda Life Insurance). In 1893, the Yasuda zaibatsu absorbed the Tokyo Fire Insurance Company, later renamed the Yasuda Fire and Marine Insurance Company.cite web | title=The Yasuda Fire and Marine Insurance Company, Limited|url=http://www.fundinguniverse.com/company-histories/THE-YASUDA-FIRE-AND-MARINE-INSURANCE-COMPANY-LIMITED-Company-History.html| accessdate=2008-04-20]

20th century

The Yasuda focus on banking was narrowed by the merger of eleven Yasuda-controlled banks into the Yasuda Bank in 1913. The post-merger bank was the by far largest of all the zaibatsu banks.

Yasuda Zenjiro was assassinated in 1921 when he refused to make a financial donation to an ultra-nationalist.cite book | last = Melville | first = Ian | title = Marketing in Japan | publisher = Elsevier | date = 1999 | page = p. 9 | isbn = 0750641452] Zenjiro's son, Zennosuke Yasuda, assumed leadership of the zaibatsu. By 1928, the Yasuda zaibatsu was ranked behind only the Mitsui and Mitsubishi groups in total capital. In that year, the Yasuda zaibatsu encompassed 66 companies and reported total capital of ¥308 million.

During World War II, the Japanese government began forcing consolidation of major financial institutions. In January, 1942, Hajime Yasuda, the head of the conglomerate, announced that all Yasuda family members would withdraw from related and subsidiary companies, assuming new leadership positions as board members over all zaibatsu concerns.

Dissolution

Following Japan's defeat in August 1945, Yasuda executives assumed a leadership role in planning for the dissolution of their own group. The Yasuda Plan was submitted in October 1945 and stipulated that the Yasuda zaibatsu would be dissolved and that Yasuda Bank would cease to control Yasuda subsidiaries. In addition, family members and executives appointed by them would resign from all Yasuda companies. The Yasuda Plan, with some revisions, was accepted by the U.S. government in November of that year.

ee also

* Fuyo Group

References

External links

*cite web | title=The Yasuda Mutual Life Insurance Company - Company Profile, Information, Business Description, History, Background Information on The Yasuda Mutual Life Insurance Company|url=http://www.referenceforbusiness.com/history2/87/The-Yasuda-Mutual-Life-Insurance-Company.html| accessdate=2008-04-16