Nikkei: “Mizuho Bank To Punish 54 Current, Ex-Execs For Gangster Loans”

Saturday, October 26, 2013 TOKYO (Nikkei)– Mizuho Bank plans to reprimand 54 current and former senior executives for failing to take responsibility for loans to borrowers associated with organized crime, The Nikkei learned Friday.

The bank will mete out punishments to 39 current executives. Chairman Takashi Tsukamoto is poised to step down from the bank, but will stay on as chairman of holding company Mizuho Financial Group Inc. (8411). He and President Yasuhiro Sato will face a half-year suspension in pay.

A managing executive officer and an executive officer, currently tasked with compliance, will be replaced. Thirty-five officials, including deputy presidents and managing executive officers, will face 5-50% pay cuts for three or six months, depending on their degree of responsibility.

The bank will also hold 15 ex-officials responsible by asking them to return pay retroactively. Satoru Nishibori, who served as bank president in 2010 — when the bank first became aware of the loans — will be asked to give back half of three months' worth of pay from that time

Ex-Deputy President Tetsuro Ueno, who oversaw compliance, will be asked to pay back compensation as well…..!

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