The proposed research is a comparative study of the Japanese and U.S. financial system, which consists of two specific topics. The first is a study of bank restructuring which is prompted by banks' financial difficulties. I will conduct a regression analysis where I explain the degree of restructuring by the seriousness of the distress, ownership structure, and monitoring by the regulatory authorities. I speculate that the regression will produce a significant result for the U.S. banks, but not for the Japanese banks. This is because nobody disciplines Japanese banks. The second topic is a study of the difference of the investor behavior in Japan and the U.S. by conducting a questionnaire survey. I expect that these studies highlight what are common and different elements of the Japanese and the U.S. financial system.