The Tokyo District Court on Thursday ordered two former executives of the failed Long-Term Credit Bank of Japan to pay damages of 1.1 billion yen in connection with irrecoverable loans extended by the bank during the bubble economy period.
The court ruled, however, that 67-year-old Katsunobu Onogi, a former president of the bank, was not responsible for the bad loans, as had been claimed by the plaintiff, the state-run Resolution and Collection Corp.
RCC, which took over the loans from LTCB, the predecessor of Shinsei Bank, sued Onogi and eight other former LTCB executives, demanding 4.9 billion yen in damages.
Yoshiharu Suzuki, 66, a former vice president of the bank, and Tsutomu Chiba, 64, a former managing director, were ordered to pay the redress.
Presiding Judge Atsuo Nagano said the two had approved “very unnecessary” loans.
The judge absolved Onogi and the six other former executives of responsibility, saying loans were “unavoidable in consideration of a bank’s management.”