Mizuho FG head said to resign over system failures

Sources say the President and CEO of Mizuho Financial Group intends to resign to take responsibility for a series of system failures that hit the Japanese banking giant earlier this year.

This comes after the group's Mizuho Bank unit experienced system problems.

In February, bank cards and passbooks became stuck inside ATMs, forcing customers to wait for hours to retrieve them.

In August, over-the-counter transactions temporarily became unavailable at about 520 branches nationwide. That included ones operated by Mizuho Trust & Banking, another group unit.

Sources say the Financial Services Agency is making final arrangements to deliver another business improvement order to the group and Mizuho Bank. It already slapped a similar punishment on the group in September.

The agency believes the group's President and CEO Sakai Tatsufumi bears heavy responsibility for the problems.

It is set to notify the bank as early as next week of the results of its inspection into what caused the glitches.

The president and CEO of the Mizuho Bank unit, Fujiwara Koji, is also expected to step down.

It was found that during a system failure, the bank made overseas transfers without following procedures required by law.

It reportedly failed to sufficiently check if the transfer destinations had any links to money laundering. The Finance Ministry, which has jurisdiction over the matter, has launched an investigation.