With the legislature scheduled to recess on Friday, Vice Minister of Finance Sam Wang (
The KMT and PFP legislative caucuses joined forces last Friday in passing the resolution with a 112 to 95 vote, stipulating that the government's Financial Restructuring Fund (重建基金) -- a mechanism similar to the US Resolution Trust Corp set up in early 1980s -- should be used to resolve the difficulties of grassroots financial institutions instead of debt-ridden commercial banks, such as Chung Shing Bank (中興銀行) and Kaohsiung Commercial Bank (高雄企銀).
The legislature regards farmers' and fishermen's banks and local credit cooperatives as grass-roots financial institutions as .
The resolution immediately created obstacles to the ministry's dealings with financially distressed commercial banks, as the third auction to sell off Chung Shing assets will be held in mid-July.
According to the ministry's plan, the government may help absorb as much as NT$60 billion of Chung Shing's debt, which is all that the fund has left after bailing out 36 grassroots institutions last year.
"We will discuss the matter further with the legislature this week," Wang said.
The ministry hasn't decided whether it will propose a motion to reverse the legislative resolution this week, he said.
Minister of Finance Lee Yung-san (
"It's unreasonable to ask the ministry to bail out all problematic grassroots financial institutions before it can deal with problematic commercial banks," Lee was quoted as saying in the local Chinese-language media.
"If commercial-bank assets turn negative, how can the ministry just sit back and do nothing while the situation further deteriorates?" Lee said.
"In any case, the ministry intends to first deal with any serious problems at grassroots financial institutions," Lee said.
Failing to block the opposition-led resolution from passing, Lee said that he will further discuss the matter with other finance officials. A veto of the resolution may be considered, he said.
Zhang Yazhou was sitting in the passenger seat of her Tesla Model 3 when she said she heard her father’s panicked voice: The brakes do not work. Approaching a red light, her father swerved around two cars before plowing into a sport utility vehicle and a sedan, and crashing into a large concrete barrier. Stunned, Zhang gazed at the deflating airbag in front of her. She could never have imagined what was to come: Tesla Inc sued her for defamation for complaining publicly about the vehicles brakes — and won. A Chinese court ordered Zhang to pay more than US$23,000 in
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday held its first board of directors meeting in the US, at which it did not unveil any new US investments despite mounting tariff threats from US President Donald Trump. Trump has threatened to impose 100 percent tariffs on Taiwan-made chips, prompting market speculation that TSMC might consider boosting its chip capacity in the US or ramping up production of advanced chips such as those using a 2-nanometer technology process at its Arizona fabs ahead of schedule. Speculation also swirled that the chipmaker might consider building its own advanced packaging capacity in the US as part
‘NO DISRUPTION’: A US trade association said that it was ready to work with the US administration to streamline the program’s requirements and achieve shared goals The White House is seeking to renegotiate US CHIPS and Science Act awards and has signaled delays to some upcoming semiconductor disbursements, two sources familiar with the matter told reporters. The people, along with a third source, said that the new US administration is reviewing the projects awarded under the 2022 law, meant to boost US domestic semiconductor output with US$39 billion in subsidies. Washington plans to renegotiate some of the deals after assessing and changing current requirements, the sources said. The extent of the possible changes and how they would affect agreements already finalized was not immediately clear. It was not known
A move by US President Donald Trump to slap a 25 percent tariff on all steel imports is expected to place Taiwan-made steel, which already has a 25 percent tariff, on an equal footing, the Taiwan Steel & Iron Industries Association said yesterday. Speaking with CNA, association chairman Hwang Chien-chih (黃建智) said such an equal footing is expected to boost Taiwan’s competitive edge against other countries in the US market, describing the tariffs as "positive" for Taiwanese steel exporters. On Monday, Trump signed two executive orders imposing the new metal tariffs on imported steel and aluminum with no exceptions and exemptions, effective