Three Japanese banks form $1 trillion alliance

TOKYO Hoping to find their way out of the industry's worst crisissince World War II, three Japanese banks announced today an alliancethat would create the world's largest banking group - a giant withmore than $1 trillion in assets.

The alliance, to be implemented over the next two years, wasannounced by the presidents of Dai-Ichi Kangyo Bank Ltd., theIndustrial Bank of Japan Ltd., and Fuji Bank Ltd.

The move sent share prices soaring on the Tokyo Stock Exchange andwas generally welcomed by analysts as a long-overdue effort to dealwith the realities of an overcrowded market, massive bad loans andwoefully low profit margins.

The combination isn't likely to impact …