SYMPOSIUM ON BUILDING THE FINANCIAL SYSTEM OF THE 21ST CENTURY: AN AGENDA FOR JAPAN AND THE UNITED STATES ARMONK, NEW YORK • OCTOBER 23-25, 2009 AGENDA FRIDAY, OCTOBER 23 5:30-6:15 Doral Guests – Bus to the Weill Center departs approximately every 15 minutes 6:00-6:30 Cocktail Reception – Main Lobby of the Weill Center 6:30-6:40 GREETINGS – Conference Room H, second floor Hal Scott, Nomura Professor and Director, Program on International Financial Systems (PIFS), Harvard Law School Tribute to Tasuku Takagaki Takashiro Furuhata, Executive Director, International House of Japan 6:40-7:40 KEYNOTE ADDRESS – Conference Room H Bill Rhodes, Senior Vice Chairman, Citi; Senior Vice Chairman, Citibank Shigesuke Kashiwagi, President and Chief Executive Officer, Nomura Holding America, Inc. 7:45-9:15 Dinner – Main Dining Room, first floor 9:15-11:00 After-Dinner Cocktails – Main Lobby 9:15 Doral Guests – Bus to the Doral; meet in Main Lobby 10:00 Doral Guests – Bus to the Doral; meet in Main Lobby 11:00 Doral Guests – Last bus to the Doral; meet in Main Lobby SATURDAY, OCTOBER 24 7:00-8:00 Doral Guests – Bus to the Weill Center departs approximately every 15 minutes 7:30-8:15 Breakfast – Main Dining Room Panelists, Reporters, and Facilitators – Breakfast Meeting in Main Dining Room 8:15-8:25 WELCOME & OPENING REMARKS – Conference Room H Hal Scott, Nomura Professor and Director, Program on International Financial Systems (PIFS), Harvard Law School 1 8:25-8:45 PANEL SESSION – Conference Room H Topic 1: The Future of Banking and Securities Regulation Japan Panelist: Nobuchika Mori, Deputy Commissioner, International Affairs and Supervision, Financial Services Agency, Government of Japan U.S. Panelist: Anil Kashyap, Professor of Economics and Finance, University of Chicago 8:50-10:15 SMALL GROUP SESSIONS Group Room Facilitator - Japan Facilitator - U.S. Reporter 1 Conference Room H Takatoshi Ito Stefan Gavell William Grimes 2 Conference Room J Taisuke Sasanuma John Allison Arthur Mitchell 3 Conference Room F Shuji Yanase Jonathan Malamud Andrew Conrad 4 Conference Room E Naoko Nakamae Yukio Yoshimura Akihiro Wani 5 Dining Room 2 Akira Ariyoshi Christopher LaFleur Peter McKillop 6 Conference Room A Ryusaburo Harasawa Shigemitsu Sugisaki Christopher Wells 7 Conference Room B Hiroshi Ota Satoru Murase Laurence Bates 10:15-10:25 Refreshment Break 10:25-10:45 PANEL SESSION – Conference Room H Topic 2: Crisis Management and Resolution: What is the Role of the Central Bank Japan Panelist: Mitsuhiro Fukao, Professor of Economics, Keio University U.S. Panelist: Matthew Higgins, Vice President, Federal Reserve Bank of New York 10:50-12:20 SMALL GROUP SESSIONS Group Room Facilitator - Japan Facilitator - U.S. Reporter 1 Conference Room H Naoki Tabata Alicia Ogawa Christopher Wells 2 Conference Room J Takashi Oyama Thomas Cargill Akihiro Wani 3 Conference Room F Tadashi Iwashita Paul Sheard Peter McKillop 4 Conference Room E Yoshio Okubo Anthony Miller William Grimes 5 Dining Room 2 Hiroshi Watanabe Joe Peek Laurence Bates 6 Conference Room A Naoyuki Yoshino Victoria Melendez Arthur Mitchell 7 Conference Room B Estuko Katsu Robin Radin Andrew Conrad 12:25-1:30 Lunch – Main Dining Room KEYNOTE ADDRESS Takafumi Sato, Former Commissioner, Financial Services Agency, Japan 1:30-3:00 PANEL SESSION – PLENARY DISCUSSION ONLY – Conference Room H Topic 3: How Should the U.S. Respond to the Financial Crisis: Lessons from Japan Japan Panelist: Hideaki Fukazawa, President and Managing Partner, Tokio Marine Capital Co., Ltd. Japan Panelist: Akihiro Wani, Partner, Linklaters Tokyo U.S. Panelist: David Hale, Chairman, David Hale Global Economics U.S. Panelist: Thierry Porté, Operating Partner, J.C. Flowers & Co.; Chairman, U.S.-Japan Conference on Educational and Cultural Interchange (CULCON) 2 3:00-5:45 Free Time 3:00-6:00 Reporters Meeting – Conference Room F 3:00 Doral Guests – Bus to the Doral; meet in Main Lobby 3:15-4:45 Wine Tasting – Great Room, Conference Center 1 4:45 Bus to the Doral 5:30-6:30 Doral Guests – Bus to the Weill Center departs approximately every 15 minutes 6:15- 6:45 Cocktail Reception – Main Lobby 6:45-7:45 KEYNOTE ADDRESS – Conference Room H Rintaro Tamaki, Vice Minister of Finance for International Affairs, Ministry of Finance Japan Neal S. Wolin, Deputy Secretary, U.S. Department of the Treasury 7:45-9:15 Dinner – Main Dining Room 9:15-11:00 After-Dinner Cocktails – Main Lobby 9:15 Doral Guests – Bus to the Doral; meet in Main Lobby 10:00 Doral Guests – Bus to the Doral; meet in Main Lobby 11:00 Doral Guests – Last bus to the Doral; meet in Main Lobby SUNDAY, OCTOBER 25 ALL PARTICIPANTS: PLEASE BE SURE TO CHECK OUT OF YOUR ROOM PRIOR TO THE OPENING OF THE SYMPOSIUM (NO LATER THAN 8:15 A.M.). STORE ALL LUGGAGE AT THE WEILL CENTER. 6:45-7:30 Doral Guests – Bus to the Weill Center departs approximately every 15 minutes 7:30-8:15 Breakfast – Main Dining Room Chairs and Reporters – Breakfast Meeting in Main Dining Room 8:15-9:15 PRESENTATION & DISCUSSION – Conference Room H Topic 1: The Future of Banking and Securities Regulation Japan Chair: Takatoshi Ito, Professor, Graduate School of Economics, University of Tokyo U.S. Chair: Douglas L. Peterson, Chairman, Representative Director, President, and Chief Executive Officer, Citigroup Japan Holdings Corp. 3 9:20-10:20 PRESENTATION & DISCUSSION – Conference Room H Topic 2: Crisis Management and Resolution: What is the Role of the Central Bank Japan Chair: Akinari Horii, Assistant Governor, Bank of Japan U.S. Chair: Robert Alan Feldman, Managing Director, Morgan Stanley Japan Securities Co., Ltd. 10:20-10:30 Refreshment Break 10:30-11:30 PRESENTATION & DISCUSSION – Conference Room H Topic 3: How Should the U.S. Respond to the Financial Crisis: Lessons from Japan Japan Chair: Yoshio Okubo, Senior Managing Director, Japan Securities Dealers Association U.S. Chair: Masaaki Kanno, Managing Director, Chief Economist, JPMorgan Securities Japan Co., Ltd. 11:30-1:00 Closing Lunch – Main Dining Room 1:15 Reserved shuttle buses depart for Manhattan – Main Lobby 4 SYMPOSIUM ON BUILDING THE FINANCIAL SYSTEM OF THE 21ST CENTURY: AN AGENDA FOR JAPAN AND THE UNITED STATES ARMONK, NEW YORK • OCTOBER 23-25, 2009 SYMPOSIUM REPORT PROGRAM ON INTERNATIONAL FINANCIAL SYSTEMS, HARVARD LAW SCHOOL INTERNATIONAL HOUSE OF JAPAN SYMPOSIUM ON BUILDING THE FINANCIAL SYSTEM OF THE 21ST CENTURY AN AGENDA FOR JAPAN AND THE UNITED STATES ARMONK, NEW YORK OCTOBER 23-25, 2009 HOST SPONSOR CITI GLOBAL SPONSOR STATE STREET SPONSORS ADVANTAGE PARTNERS LLP AFLAC BANK OF TOKYO-MITSUBISHI UFJ LTD. BINGHAM MCCUTCHEN MURASE DAIDO LIFE INSURANCE COMPANY DAIWA SECURITIES GROUP DAVIS POLK DEVELOPMENT BANK OF JAPAN ELLIOTT ADVISORS (ASIA) LTD. ERNST & YOUNG SHINNIHON LLC JAPAN SECURITIES DEALERS ASSOCIATION JPMORGAN KPMG AZSA & CO. LINKLATERS LAW OFFICE MITSUBISHI CORPORATION MIZUHO CORPORATE BANK LTD. MONEX GROUP, INC. MORGAN STANLEY NAGASHIMA OHNO & TSUNEMATSU NIKKO ASSET MANAGEMENT NOMURA THE NORINCHUKIN BANK PACIFIC ALLIANCE PRUDENTIAL FINANCIAL, INC. SUMITOMO MITSUI BANKING CORPORATION SUMITOMO TRUST & BANKING CO., LTD. TOKYO STOCK EXCHANGE GROUP, INC. UNIO HOLDINGS UNISON CAPITAL, INC. WHITE & CASE LLP SYMPOSIUM ON BUILDING THE FINANCIAL SYSTEM OF THE 21ST CENTURY: AN AGENDA FOR JAPAN AND THE UNITED STATES ARMONK, NEW YORK • OCTOBER 23-25, 2009 TABLE OF CONTENTS AGENDA ................................................................................................................................. 6 PARTICIPANT LIST ................................................................................................................ 9 REPORT: 2009 Symposium on Building the Financial System of the 21st Century: An Agenda for Japan and the United States, Harvard Law School................... 14 PRESENTATION OF FINAL PLENARY SESSION .............................................................. 33 KEYNOTE ADDRESSES Bill Rhodes............................................................................................................................. 51 Takafumi Sato........................................................................................................................ 56 Neal S. Wolin ......................................................................................................................... 64 APPENDIX I – CONCEPT PAPERS Japan’s Financial Mt. Fuji David L. Asher ....................................................................................................................... 70 The Obama Administration’s Plan for Financial Reform: Part 1 Michelle Brooks, Izukanne Emeagwali, Fathia Touray, and Kevin Zambrowicz.................. 106 Japan and the U.S.: Looking More and More the Same Thomas F. Cargill................................................................................................................. 114 Japan Economics: How Japan Got Financial Reform Right Robert Alan Feldman ........................................................................................................... 124 (Japanese) ........................................................................................................................... 135 Future of the Financial Supervision and Regulation after Lehman Shock Mitsuhiro Fukao ................................................................................................................... 145 Eight Lessons from Japan on Bank Recapitalization Takeo Hoshi and Anil K. Kashyap ....................................................................................... 164