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Probe finds Japanese bank Mizuho lax about cleaning up loans to criminal gangs
Reported by: Associated Press
Reported: Sunday, October 27, 2013 10:42 PM EDT
A panel says Japanese bank Mizuho Financial Group was lax in cleaning up loans that the lender discovered were linked to organized crime but did not deliberately cover them up.
It characterized the more than 200 million yen in lending as "captive loans" acquired when Mizuho acquired consumer finance company Orient Corp.
The panel's report said top management neglected to ensure compliance with laws against dealings with organized crime after it discovered the loans in early 2011. Soon after, Mizuho's management became preoccupied with ATM malfunctions triggered by an influx of donations for victims of the 2011 tsunami disaster.