Ex-Mizuho president knew of Yakuza loans

Mizuho Bank President Yasuhiro Sato said Tuesday former President Satoru Nishibori had been aware of the bank lending to Yakuza groups since July 2010 at the latest, contrary to the bank’s earlier claim that only executives in charge knew of the transactions. The Financial Services Agency ordered Mizuho to improve compliance on Sep. 27, saying the Tokyo-based lender failed to take steps to end loans to the groups for more than two years after becoming aware of them. The bank made 230 loans, mostly for automobiles, valued at about 200 million yen, the FSA said. (japantimes.co.jp)

Satoruu Nishibori, who was president of Mizuho Bank Ltd. at the time, knew of the loans to “antisocial” groups, President Yasuhiro Sato said at a news briefing in Tokyo today. Sato apologized, saying he bears responsibility even though he was only made aware of the loans in March during the FSA’s probe. The regulator ordered Mizuho to improve compliance on Sep. 27, saying the Tokyo-based lender failed to take steps to end loans to crime groups for more than two years after becoming aware of them. The bank made 230 loans, mostly for automobiles..Mizuho has set up an internal committee and a panel of three outside experts to improve compliance. The bank must submit a report to the FSA by Oct. 28 showing how it plans to improve operations. It last received a business improvement order in 2011 after a computer glitch delayed transactions following the nation’s record earthquake.