This page has been archived and commenting is disabled.
Mizuho President Busted For Giving Loans To Yakuza, Apologizes
While the biggest problem facing US bands is lack of demand (and supply, since it is far more profitable for banks to "invest" reserves in risk assets using excess deposits as initial margin) for loans, Japan doesn't have such a problem. At least not, when the loans are made to "gangsters" such as the Yakuza. AFP reports that executives at Mizuho Financial Group, one of Japan's largest banks, knew the firm was doing business with gangsters but failed to stop it, a panel said Monday, as Japan's finance minister slammed the banking giant over the affair.
The bank has been in the public spotlight since it emerged last month that it processed hundreds of loans worth about $2 million for the country's notorious Yakuza crime syndicates. And while in the US the punishment for banks caught in criminal behavior is a simple slap on the wrist and a settlement paid using TARP money, in Japan bank CEO still have some semblance of honor. Bloomberg adds that in the aftermath of the revelations, Mizuho's president Yasuhiro Sato will give up six months of pay ahead of more penalties, and will resign his Chairmanship at Mizuho Bank while keeping the post at the parent company. Some 52 other current executives will also be penalized.
More:
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 Group AG in Tokyo. “We still need to pay careful attention to whether the FSA will hand down any additional severe punishment.”
Sato, 61, who has driven measures designed to improve management at Mizuho since taking the post in June 2011, said he didn’t consider stepping down even while acknowledging the incident dented his authority.
“Mizuho’s top management including myself deeply regret this issue,” he said. “My leadership was severely hurt, but I don’t think it’s impossible to recover.”
...
The lender failed to act on 200 million yen ($2 million) in about 230 transactions with members of crime groups through its Orient Corp. (8585) affiliate, the agency said on Sept. 27. There may have been about 460 transactions initially, Sato said yesterday, without giving a yen amount.
And so on.
While it is a given that banks will continue to engage inwhatever activities provide them with marginal revenue, criminal or otherwise, perhaps the most jarring news in the above story is that the once proud Japanese Yakuza was forced to seek a paltry $2 million in 230 transactions, or about $10k per loan. If there is any better indication of just how bad the Japanese economy is, than the local mob being forced to seek bank loans, we have yet to hear it.
Finally, Japanese banks handing over loans to the mob is hardly as bad as the US, where considering the government has contemplated launching RICO cases against not just one or two US banks, the banks are the mob.
»
- 8692 reads
- Printer-friendly version
- Send to friend
- advertisements -
Yak-usa?? WTFD??
You probably know it better as the Mob.
In the USA we have the Chicago-mob. Also funded...
So I guess the Yakuza is embarrassed for dealing with such a disreputable, corrupt, criminal organization such as the government?
Political Corruption Interview with Jesse Venturahttp://www.planbeconomics.com/2013/10/political-corruption-interview-wit...
I heard they moved to DC.
Anyone that watches Hawaii Five-0 knows that McGarrett and Danno have this covered!!
@ZippyBananaPants,
Just get Kono's man on it, he is connected.
If Diane Feinstein can just state that Obama didn't know about tapping foreign leaders phones and won't do it again, the CEO of Mizuho can use the same excuse right?
Shame on Yakuza for doing business with gangsters.
Heh heh. If you're a crook you never want to be seen associating with criminals.
Here I thought they had standards....
When even gangsters need to borrow so many times in such small amounts it is surely a sign that things are not going well in Japanese society and economy.
Well indeed, and the worst thing in this story is the Yakuza became laughing stock for the world.
Tattoos for everyone!
Sure, that's the best way to get yourself killed, my tattoo's are in the mouth, where they can't be seen.
That is one attractive body (on the trailer JPG).
Could do with a bit less tats and a bit more tits.
Seppuku is of course the only appropriate way to settle this. Also to be introduced on Walllstreet.The only way for them banksters to redeem themselves.
Jump, you fukkers! ;-)
Oh, oh, I should know this one but I can't quite think ... Lemme guess. His official salary is one yen per year, but his total compensation package includes stock options and ...
What is with Japan's witch hunt against businessmen who make Japan great while doing God's work?
HSBC GOTS A NEEEEEEEW CLIENT
Speaking of clients...
Molly geez......Tyler scored Victoria's Secret advertising. It beats having to look at the I've fallen and can't get up ads.
Good job Amigo!!!
"Land of hope and gloria, Land of my Victoria"
http://www.youtube.com/watch?v=TraFxjPyDns
Falling on one's sword is the honorable act.
I guess we'll find out when Sebelius testifies......but I'm not really counting on it.
She'll probably speak for an hour then take the 5th.
When they say "gangsters" are they referring to the yakuza or the real gangsters?
I thought we had standards here at ZH. What is a story about $2 million doing here?
It could be regarded as a story about "bitchez", thereby fully qualifying ...
230 $10k loans for a crime syndicate? I guess times are tough and pimping ain't what it used to be.
C'mon Tyler(s), throw us a bone. I wanted to see the hottie with the tats full size.
Strange how some body art can be asinine and some can be so hot. These folks are way ahead of the hipsters -
http://art.blurgroup.com/blog/b-inspired/ancient-art-of-the-japanese-teb...
I could not get your link to work. It came up with some sort of Kickstarter clone. Wanna try again?
What was the poor fucker supposed to do? Tell them NO?
NO = Army + bright light
Politicians and bank executives calling people "criminals"?
That's like the pot calling the kettle black.
textbook feudalism. Damn you to Hell, Gingrich!
Yakuza = Mostly Harmless.
Yeah... right. How about you piss them off? We'll see if you can type "Harmless" so easily after you cut off some of your fingers.
M'kay...I take it you've never been...anywhere?
you got me pegged all right. Moribund. Obese. In my mom's basement. Good call, oh Simon Black'esqe traveller of the world.
Look dude, people thought red M&M's were harmless too. Up until about 1975. Oops.
First of all, I said "Mostly Harmless," not "Harmless."
To those who are aware of such things, it's a Douglas Adams reference. He used the phrase to describe planet Earth.
Secondly, I think that of all the organized crime units around the world, I think the Yakuza are probably the most codified, and that's a good thing.
As for your macho internet typing about fingers or whatever, try to get out of the house every now and again. It's good for the soul.
i thought the yakuza had gone legit locally... whole different story on the west coast of the usa.... plus they are heavily entangled in banks in terms of ownership... see sherman skolnicks work... this smells fishy (and not because of the sushi)
ironic, isn't it? if these banks(besides mizuho, also mitsubishi and sumitomo mitsui are under suspicion, back then merchants) wouldn't have financed meiji oligarchy (such clans as Satsuma, Choshu, Hizen, and Tosa), they would be nowhere near where they are now.