Japan's regulators probe Cerberus and Aozora -FT

TOKYO, March 31 (Reuters) - Japanese regulators are examining the ties between U.S. private equity firm Cerberus Capital Management [CBS.UL] and Japan's Aozora Bank (8304.T) on concerns Cerberus may have put pressure on Aozora to finance its deals, the Financial Times reported on Monday.

The financial regulator is concerned that the two firms have not kept at arm's length, the paper quoted people familiar with the probe as saying.

Earlier this month, Aozora said Cerberus would pay up to $416 million to raise its stake in the Japanese bank to nearly 46 percent, a little more than a month after the midsize lender cut its earnings outlook on subprime losses. (Reporting by Aiko Hayashi; Editing by Hugh Lawson)