HONG KONG, June 16 (Reuters Breakingviews) - Japan’s third-largest financial institution by assets has been plagued by technology problems for a decade, but its chief executives are refusing to take responsibility. After a series of embarrassing incidents this year, including one which froze nearly all of its automated teller machines, the Nikkei business daily reported Mizuho Bank CEO Koji Fujiwara would go, while Tatsufumi Sakai, boss of parent Mizuho Financial Group (8411.T), would take a pay reduction. A single departure wouldn’t resolve such a stubborn problem, but it would at least signal a start .
Now it appears Fujiwara will stay on and take a 50% pay cut for a paltry four months read more , while Sakai will be similarly docked for six. Three IT & Systems Group leaders have been reassigned – not fired.
An internal investigation blamed corporate culture for the flounders. That was precisely the financial watchdog’s conclusion 10 years ago. In theory, cultural problems mean everyone is responsible. In reality, nobody is. In Japan, investors rarely lose money betting against change. (By Pete Sweeney)
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