The privatization of Japan Post [see ‘Whale in a pond’ makes a break for open waters] will create the world’s largest bank by assets, although the real cause for celebration should be the promised end to the curse of pork-barrel politics that has involved savers’ money being channelled through government bonds into expensive and often quite useless public works projects. Outgoing prime minister Junichiro Koizumi can be rightly proud of this hard-won reform but market participants in Japan are already expressing concerns about how the privatization is being handled and what kind of an investor the new postal savings bank –...
