Yakuza loan scandal widens

Shinsei Bank admits doing business with mobsters.

“Our internal controls were not strict enough,” said Shinsei President Shigeki Toma. Shinsei also admitted to opening accounts for “anti-social forces,” a popular term for gangsters. Japan's finance minister Taro Aso called Shinsei's admission “sensible,” days after he criticized the Mizuho transactions as a “huge problem.”

Mizuho has been heavily criticized since it became known that it processed hundreds of loans worth about US$2 million for the yakuza. The Financial Services Agency said this week it would look at Mizuho Financial Group's business dealings as well as rivals Mitsubishi UFJ and Sumitomo Mitsui Banking Corporation.