Mizuho head said to resign over system glitches

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.

The group's Mizuho Bank unit experienced system problems eight times this year.
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.
The series of malfunctions prompted the Financial Services Agency to slap a business improvement order on the group in September.

But apparently the agency thinks that is not enough.
The sources say the agency has strengthened its view that there are flaws in Mizuho's corporate governance, including its management.
So, it is making final arrangements to deliver another punishment to the group and Mizuho Bank.

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

Also expected to step down is Fujiwara Koji. He heads the Mizuho Bank unit.

Investigations found that the bank made overseas transfers during a system failure without following procedures required by law.
It reportedly failed to sufficiently check if the transfer recipients had any links to money laundering.