Mizuho Financial Group Inc.’s investigators said a probe into loans made to gangsters uncovered a failure in internal controls rather than efforts by Japan’s third-largest bank to deliberately mislead regulators.
Mizuho Financial Group Inc. may cut pay and add new board members to mollify investors, lawmakers and regulators after failing to end loans to crime groups in the biggest scandal of President Yasuhiro Sato’s two-year tenure.
The yakuza, Japan’s organized-crime syndicates that have reaped billions from activities ranging from extortion to human trafficking, are finding their ranks decimated by authorities employing methods similar to those used to jail Al Capone: going after their money.
Pressure on Mizuho Financial Group Inc. President Yasuhiro Sato mounted after Japan’s financial regulator told the bank to explain how and when top executives found out about its loans to crime groups.
Mizuho Financial Group Inc., Japan’s third-biggest banking group by market value, selected Fujitsu Ltd., Hitachi Ltd. and two other companies to develop a new computer system for the lender’s national operations.