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Japanese Regulator to Inspect 3 Big Banks in 'Yakuza' Loan Probe

Mizuho Financial Group President Yasuhiro Sato (C) and other company officials bow at a news conference at the Bank of Japan headquarters in Tokyo, Oct. 28, 2013.
Japan's Financial Services Agency said on Tuesday that next week it will start inspecting three major banks, including the country's top lender, Mitsubishi UFJ Financial Group, over possible transactions involving “yakuza” mobsters.

One of the banks, Mizuho Financial Group, has been under fire after regulators last month reprimanded it for failing to terminate loans to members of organized crime syndicates for more than two years after discovering them. Sumitomo Mitsui Financial Group Inc, the third largest lender in terms of assets, is the third bank on the list for inspection.

On Monday, Mizuho said that the chairman of its banking unit will resign while its president will take a six-month suspension of pay following a separate loans-to-mobsters scandal that has embroiled Japan's second-biggest lender by assets.