MSN MoneyCentral- A British hedge fund said Monday it will accept the Japanese government’s rejection of its proposal to raise its stake in a major utility — although it added that it still doesn’t agree with the reasoning behind the order.

The Children’s Investment Master Fund had proposed raising its stake in J-Power — Japan’s largest electricity wholesaler — to as much as 20 percent from 9.9 percent. The government rejected that proposal earlier this year, citing potential disruptions to public order.

The fund has contested the decision as lacking transparency and including incorrect information and false premises.

But it said the government was unlikely to change its mind. The fund will now instead focus on improving corporate governance at J-Power, it said in a statement.

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News Channel 8- A U.S. Treasury official said Monday the global credit crunch is gradually calming following efforts by the Federal Reserve and other central banks.Clay Lowery, assistant secretary for international affairs at the U.S. Treasury, said the Fed and other central banks have coordinated their actions to protect the financial system from possible disruptions after the U.S. subprime mortgage crisis surfaced last year.

As a result, the availability of credit has improved "modestly," Lowery told the Foreign Correspondents Club of Japan.

He said U.S. financial institutions reported more than $300 billion in subprime-related losses, but that was alleviated by the raising of an additional $200 billion in capital.

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