TSU, Mie Pref. — Mie Prefectural Police raided the home of the former president of the failed Mie Prefectural Credit Union, its head office and other locations Wednesday in connection with a breach of trust investigation. Investigators said they suspect Tatsuo Ichikawa, former president of the credit union, and other former executives authorized loans despite lacking sufficient collateral for them. The loans later became irrecoverable. According to a source, a top official in the union demanded the firm extend loans to a company run by an acquaintance, and the other members of the board endorsed them, despite knowing it was unlikely they would be repaid. More than 10 billion yen in loans extended by the credit union is believed to be irrecoverable. The financial institution was placed under the care of court-appointed administrators after officials determined in May that the union could no longer rehabilitate itself due to massive nonperforming loans and latent losses on stockholdings.

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