Mizuho admits former exec knew of crime group link

Sunset in Tokyo, Japan

Mizuho Financial Group's loan scandal deepened after the Japanese bank said a former top executive knew it was lending money to crime groups.

Bloomberg reports that Satoru Nishibori, who was president of Mizuho Bank Ltd. at the time, knew of the loans to 'antisocial' groups, President Yasuhiro Sato said at a news briefing in Tokyo Tuesday.

The firm issued a statement saying top management were aware, contrary to findings by Japan’s financial regulator released on 27th September that only the 'executive in charge' had knowledge.

The scandal underscores the ties between yakuza gangs and the Japanese financial industry six years after the Financial Services Agency punished Mitsubishi UFJ Financial Group for doing business with the groups for decades. Sato apologized Tuesday, saying he was only made aware of the loans in March during the FSA’s probe and he bears responsibility.

The regulator ordered Mizuho to improve compliance on 27th September, saying the bank failed to take steps to end loans to crime groups for more than two years after becoming aware of them.

To access the complete Bloomberg article hit the link below

Mizuho's Ex-Banking Unit Chief Knew of Loans to Crime Groups

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