Mizuho Financial Group

Mizuho Financial Group, Inc.
株式会社みずほフィナンシャルグループ
Public
Traded as TYO: 8411
OSE: 8411
NYSE: MFG
TOPIX Core 30 Component
Industry Banking, Financial Services
Predecessors Dai-Ichi Kangyo Bank
Fuji Bank
Industrial Bank of Japan
Founded 2001 (2001)
Headquarters Marunouchi, Chiyoda, Tokyo, Japan
Key people
 Yasuhiro Sato
(President & CEO)
Products Credit cards, consumer banking, corporate banking, investment banking, global wealth management, financial analysis, private equity
Revenue ¥2.111 trillion (2012)
¥662.83 billion (2012)
¥656.38 billion (2012)
Total assets ¥166.36 trillion (2012)
Total equity ¥4.470 trillion (2012)
Number of employees
 56,109 (2012)
Subsidiaries Mizuho Bank
Mizuho Corporate Bank
Mizuho Trust & Banking
Website www.mizuho-fg.co.jp
Mizuho Bank branch in Ginza
Mizuho annual income by division (2005)
1. Mizuho Bank
2. Mizuho Corporate Bank
3. Mizuho Trust
4. Mizuho Securities

Mizuho Financial Group, Inc. (株式会社みずほフィナンシャルグループ, Kabushiki-gaisha Mizuho Finansharu Gurūpu), abbreviated as MHFG, or simply called Mizuho, is a banking holding company headquartered in the Ōtemachi district of Chiyoda, Tokyo, Japan. The name "mizuho (瑞穂)" literally means "abundant rice" in Japanese and "harvest" in the figurative sense.

It holds assets in excess of $1.8 trillion US dollars through its control of Mizuho Bank, Mizuho Corporate Bank, and other operating subsidiaries.[1] The company's combined holdings form the second largest financial services group in Japan. Its banking businesses rank second in Japan after Mitsubishi UFJ Financial Group and the 15th in the world by total assets as of March 2017.[2] It is the 90th largest company in the world according to Forbes rankings as of May 2017.[3] Its shares have a primary listing on the Tokyo Stock Exchange.

Mizuho offers a range of financial services, including banking, securities, trust and asset management services, employing more than 56,000 people in 900 offices.[4]

Divisions and brands

Mizuho splits its business into four distinct divisions, on a global basis:

Retail Group

Mizuho is active in retail banking with 515 branches and over 11,000 automated teller machines (ATMs). Mizuho Bank is the only bank, other than Japan Post Bank, to have branches in every prefecture in Japan. It serves over 26 million Japanese households, 90,000 SME customers, and retail brokerage clients under the name Mizuho Investors Securities nationwide.

Global Corporate Group

Mizuho predecessors, the Dai-Ichi Kangyo Bank (DKB), the Fuji Bank (Fuji) and the Industrial Bank of Japan (IBJ), had great control over many Japanese companies through keiretsu system. The three banks led the DKB Group, Fuyo Group and the IBJ Group respectively. The Fuyo Group traces its history as far back as the old Yasuda zaibatsu. Even now, seven out of ten companies listed on the Tokyo Stock Exchange have dealings with Mizuho.[5]

Global wealth and asset management

Strategy affiliates

Offices

Sponsorship

History

Mizuho was established originally as Mizuho Holdings, Inc. by the merger of Dai-Ichi Kangyo Bank, Fuji Bank, and the Industrial Bank of Japan in 2000.

Mizuho Financial Group, Inc. was established in January 2003 to become the parent company to Mizuho Holdings, Inc. in preparation for its restructuring of businesses. Subsequently, through a share exchange on March 12, 2003, Mizuho Financial Group became the sole shareholder of Mizuho Holdings, which in turn served as the holding company of all of the group's banking and securities units.

On October 1, 2005, all subsidiaries of Mizuho Holdings were transferred to the direct control of Mizuho Financial Group. Mizuho Holdings, no longer a bank holding company, was then renamed Mizuho Financial Strategy, which now focuses on providing advisory services.

Mizuho, through its operations in New York, became involved in the subprime mortgage crisis and lost 7 billion dollars on the sale of collateralized debt obligations backed by subprime mortgages. Its entry was late, in December 2006; it did not participate in gains; only suffered losses. It is the Asian bank which suffered the most losses due to the crisis. The venture into this field has been traced to the employment of Alexander Rekeda, a specialist in this field hired away from Calyon, a unit of Crédit Agricole. Rekeda was made "head of structured credit in the Americas" where he floated several deals that turned toxic. He was later fired and Mizuho shut down its US CDO business. Examples of these included the Aardvark, Tigris, and Delphinius CDOs.[7] The latter two involved the Magnetar hedge fund.[8] Ironically, Calyon had sued Mizuho for hiring away Rekeda and other CDO experts in 2007.[9]

Timeline

Notable employees

See also

Competitors

References

  1. ↑ http://www.forbes.com/global2000/list/#header:assets_sortreverse:true
  2. ↑ "The Top 100 Banks in the World 2016", Relbanks, 30 June 2016.
  3. ↑ "Forbes The World’s Biggest Public Companies 2016 RANKING.", Forbes, May 2016.
  4. ↑ https://mizuhoamericas.com/who-we-are
  5. ↑ IR Presentation at “CLSA Japan Forum 2005” 7 March 2005
  6. ↑ https://tokyo2020.jp/en/news/sponsor/20150414-02.html
  7. ↑ Flynn, Finbarr (2008-10-29). "Mizuho $7 Billion Loss Turned on Toxic Aardvark Made in America". Bloomberg. Retrieved 2008-10-29.
  8. ↑ Timeline of Magnetar Deals by Jake Bernstein, Jesse Eisinger and Krista Kjellman Schmidt, ProPublica, April 9, 2010
  9. ↑ Calyon Cries Foul: French bank seeks retribution after CDO team defects to Mizuho, Investment Dealers' Digest, March 26, 2007, Pyburn, Allison
  10. ↑ https://www.mizuho-fg.com/release/pdf/20160615release_eng.pdf
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