Japan Press Weekly

Tweet

2013 November 6 - 12 [POLITICS]

Financial agency gives out posts to mega bank employees

In relation to Mizuho Bank’s revealed lending of money to criminal gangs, the Financial Services Agency’s lax inspections on banks are being publicly criticized. Officials of Japan’s three mega banks, including Mizuho, have regularly received temporary positions at the government agency.

As of August 15, 2012, one employee from Mizuho, four from Mizuho Corporate Bank, five from Sumitomo Mitsui Bank, and 10 from Tokyo-Mitsubishi UFJ Bank are working at the Agency’s Inspection Bureau, which is in charge of examining financial institutions.

Foreign-affiliated securities firms, such as Goldman Sachs and Morgan Stanley MUFG, also send their employees to the Agency.

Following the revelation of Mizuho’s ties with organized crime groups, the Inspection Bureau is now investigating the three major banks. It said that its members are not assigned to inspect a bank that he/she was originally working for.

“We cannot verify today’s advanced financial products and complicated business processes without utilizing private entities’ know-how,” it also explained.

Past related article:
> Mizuho Bank loans to crime syndicate called into question (October 11, 2013)