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Mizuho president to lose half-year pay over shady loans

Kyodo

Mizuho Bank President Yasuhiro Sato will be docked six months of salary over the bank’s lending to people related to organized crime groups, company officials said Friday.

Mizuho Bank Chairman Takashi Tsukamoto, Sato’s predecessor, will step down and Satoru Nishibori, who was president when Mizuho became aware of the issue, will return part of his salary retroactively, the officials said.

All together, more than 30 bank executives will face punishment.

Mizuho will submit a business improvement plan to the Financial Services Agency on Monday.

Tsukamoto will remain chairman of Mizuho Financial Group Inc., the bank’s parent company.

The scandal was brought to light following an FSA inspection that began last December. Mizuho Bank initially reported that top management had not been aware of the matter, and the FSA ordered it in September to improve operations based on the report.

Only 11 days later, the bank admitted that materials mentioning the matter had been distributed several times at board meetings and compliance meetings, reversing its earlier claim. The loans were left unaddressed for more than two years.

The lending to so-called antisocial elements involved more than ¥200 million in 230 transactions, mostly in the form of auto loans.