Nationalization of TEPCO

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Japanese government is considering about nationalization of TEPCO, which owns and operates nuclear power plants that were severely damaged by the huge earthquake and Tsunami last March.  This is the second time for nationalization of Japanese companies, which requires more than 1 trillion yen that was raised by Japanese citizen.  It is currently planned for the government to only hold some kind of newly issued preferred stocks in order not to affect the market price of the company's  common stock.  This means more than two-thirds control by the government.  Outside directors will also occupy more than half of the board member so that they can monitor the company's governance effectively.  One of the serious problem is the debt of the company continues going up due to indemnification of damage caused by the power plant accident, which was not that case in the first nationalization of Risona bank 8 years ago.

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A blog I often check our criticized this plan.  It said although they think the result in advance, they should discuss at first what kind of energy policy the government make for future generations.  This means Japan has to decide whether it continue to rely on nuclear power plants in this country that is often hit by massive earthquakes.  I totally agree his opinion.