Bank chairman resigns over loans to crime groups

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Takashi Tsukamoto has resigned as chairman of Mizuho Financial Group after Japan’s third-largest lender was penalized over loans to criminal groups for the second time in three months.

Bloomberg News reports that Japan's Financial Services Agency ordered the Mizuho Bank Ltd. lending unit to suspend new transactions through its consumer credit affiliates for a month, the regulator said in a statement in Tokyo Thursday that also announced other measures.

Tsukamoto will step down at the end of March, the bank said in a separate statement.

The new measures add to the regulator’s September order directing Mizuho to strengthen compliance after it failed to stop 200 million yen ($2 million) in credit extended to members of anti-social groups through an affiliate. Mizuho cut pay for executives including President Yasuhiro Sato and submitted a plan on October 28th to the agency outlining measures to improve internal controls.

Mizuho President Yasuhiro Sato apologized at a news conference in Tokyo for the bank receiving the extra penalties.

Hit the link below to access the complete Bloomberg article:

Mizuho Chairman Tsukamoto Resigns Over Loans to Crime Groups

Japan Bank Regulator Seeks Authority Over Tibor Benchmark Rate

 

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