OSAKA -- Documents from a Finance Ministry inspection of the defunct Kofuku Bank in 1995 showed a real estate firm with which the bank had ties was "saddled with a myriad of problems," it was learned Thursday.
Kofuku, a second-tier regional bank, was declared insolvent in May by the Financial Reconstruction Commission. It has since been put under temporary state control.
The real estate firm, Kowa Fudosan, was run by relatives of former Kofuku President Tokusuke Egawa, who is under arrest in part for allegedly helping to arrange roughly 6.8 billion yen in illegal loans to the realtor, investigators said.