In the 1920s, Tateoka Bank faced a management crisis due to the bankruptcy of its main client, Hokugun Seishi Co. By 1929 it was clear that recovery was impossible, and the bank therefore made a successful appeal to Ryou Bank for rescue. Ryou Bank's condition was that the President of Tateoka, Isaburo WATANABE, would accept liability for the greater part of Tateoka's losses. This was because Tateoka's credibility was based on WATANABE's financial reputation. WATANABE accepted these terms, and the rescue merger began. However, WATANABE's position was so damaged by the Showa depression that he tried to withdraw his agreement. The President of Ryou Bank, Shinshichi MIURA, did not wish to stop the merger because he wanted to preserve credibility, so he urged Watanabe to reconsider. The mayor of Yamagata, Katsubei TAKAHASHI, who belonged to the same political party as Tateoka Bank, produced a compromise which would lessen the burden on WATANABE. Ryou Bank agreed, making the merger possible. The roles played by WATANABE and TAKAHASHI are characteristic of rescue mergers in this period. However, without MIURA's encouragement, the merger plan would have failed.
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