Bank President gives up six months pay over loans scandal

Sunset in Tokyo, Japan

Mizuho Financial Group’s President Yasuhiro Sato will give up six months of pay for failing to stop loans made to criminal groups as the bank awaits further penalties from regulators.

Bloomberg reports that Takashi Tsukamoto will also forgo six months’ compensation and will give up his role as chairman of Mizuho Bank while keeping the post at the parent company, the bank said in a statement Tuesday.

A total of 52 other current and former executives will also be penalized, the lender said.

Sato bowed in apology at a news briefing in Tokyo, hours after submitting a report to the Financial Services Agency outlining measures such as database sharing and the addition of an outside director to prevent further transactions with yakuza crime syndicates. Lawyers commissioned by Mizuho to investigate the loans earlier said the bank’s shortcomings stemmed from lax internal controls rather than attempts to mislead regulators.

'Mizuho’s internal punishment won’t be negative for the share price as Sato remains president', said Takehito Yamanaka, an analyst at Credit Suisse in Tokyo. 'We still need to pay careful attention to whether the FSA will hand down any additional severe punishment'.

To access the complete Bloomberg article hit the link below:

Sato Takes Pay Cut as Mizuho Awaits Penalty for Crime Loans

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