The Tokyo District Court on Thursday ordered a former vice president of the failed Long-Term Credit Bank of Japan to pay 100 million yen in compensation to the Resolution and Collection Corp. for approving irrecoverable loans to a resort developer in 1992.
Presiding Judge Atsuo Nagano told Keiji Omi to compensate the government-run bad-loan collector for his negligence, saying he "failed to analyze the necessary information and extended additional loans to a project when the loans hardly seemed recoverable."
He added, "Bank executives are obliged to be calm and have the courage to withdraw from projects that appear unprofitable, while they are also required to be brave enough to embrace risks in seeking opportunities."