Mizuho Financial Group
Encyclopedia
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
ing holding company
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
headquartered in the Ōtemachi
Otemachi
is a district of Chiyoda, Tokyo, Japan. It is located north of Tokyo Station and Marunouchi, east of the Imperial Palace, west of Nihonbashi and south of Kanda. It is the location of the former site of the village of Shibazaki, the most ancient part of Tokyo....
district of Chiyoda, Tokyo
Chiyoda, Tokyo
is one of the 23 special wards in central Tokyo, Japan. In English, it is called Chiyoda ward. As of October 2007, the ward has an estimated population of 45,543 and a population density of 3,912 people per km², making it by far the least populated of the special wards...
, Japan. The name "" literally means "abundant rice" in Japanese, but it means "harvest" in the figurative sense.
It holds assets in excess of $1.44 trillion US dollars through its control of Mizuho Bank
Mizuho Bank
is the core retail banking unit of Mizuho Financial Group, which is the second-largest financial services company in Japan and one of the three so-called Japanese "megabanks"...
, Mizuho Corporate Bank
Mizuho Corporate Bank
, or MHCB, is the corporate and investment banking subsidiary of Mizuho Financial Group, the second-biggest Japanese financial services conglomerate...
, and other operating subsidiaries. The company's combined holdings form the second largest financial services
Financial services
Financial services refer to services provided by the finance industry. The finance industry encompasses a broad range of organizations that deal with the management of money. Among these organizations are credit unions, banks, credit card companies, insurance companies, consumer finance companies,...
group in Japan. Its banking businesses rank the third in Japan after MUFG and SMFG, and the ninth in the world by market capitalisation as of Nov 2009. It is the 59th largest company in the world according to Forbes Global 2000
Forbes Global 2000
The Forbes Global 2000 is an annual ranking of the top 2000 public companies in the world by Forbes magazine. The ranking is based on a mix of four metrics: sales, profit, assets and market value...
rankings. Its shares have a primary listing on the Tokyo Stock Exchange
Tokyo Stock Exchange
The , called or TSE for short, is located in Tokyo, Japan and is the third largest stock exchange in the world by aggregate market capitalization of its listed companies...
.
Mizuho offers a range of financial services, including banking, securities, trust and asset management services, employing more than 68,000 people in 30 countries. It also functions as one of the main company of the keiretsu
Keiretsu
A is a set of companies with interlocking business relationships and shareholdings. It is a type of business group. The keiretsu has maintained dominance over the Japanese economy for the greater half of the twentieth century....
Mizuho Group, formed from the former DKB Group
DKB Group
The or the Dai-Ichi Kangyo Group is the largest Japanese keiretsu.The group emerged after World War II and coalesced around the Dai-Ichi Kangyo Bank. The group's presidents began meeting regularly in 1971. Also that year the group's name developed from the merger of Dai-Ichi Bank and Nippon...
and the former Fuyo Group
Fuyo Group
is a Japanese keiretsu.The group emerged after World War II as a continuation of the Yasuda zaibatsu. It coalesced around Fuji Bank, and group presidents began meeting regularly in 1964...
.
Divisions and brands
Mizuho splits its business into four distinct divisions, on a global basis:Retail Group
Mizuho is active in retail bankingRetail banking
Retail banking is banking in which banking institutions execute transactions directly with consumers, rather than corporations or other banks. Services offered include: savings and transactional accounts, mortgages, personal loans, debit cards, credit cards, and so forth.-Types of...
with 515 branches and over 11,000 automated teller machine
Automated teller machine
An automated teller machine or automatic teller machine, also known as a Cashpoint , cash machine or sometimes a hole in the wall in British English, is a computerised telecommunications device that provides the clients of a financial institution with access to financial transactions in a public...
s (ATMs). Mizuho Bank is the only bank to have branches in every prefecture
Prefectures of Japan
The prefectures of Japan are the country's 47 subnational jurisdictions: one "metropolis" , Tokyo; one "circuit" , Hokkaidō; two urban prefectures , Osaka and Kyoto; and 43 other prefectures . In Japanese, they are commonly referred to as...
in Japan. It serves over 26 million Japanese households, 90,000 SME
Small and medium enterprise
Small and medium enterprises or small and medium-sized enterprises are companies whose headcount or turnover falls below certain limits.The abbreviation "SME" occurs commonly...
customers, and retail brokerage clients under the name Mizuho Investors Securities nationwide.
- Mizuho BankMizuho Bankis the core retail banking unit of Mizuho Financial Group, which is the second-largest financial services company in Japan and one of the three so-called Japanese "megabanks"...
- Mizuho Investors Securities
- Mizuho CapitalMizuho Capitalis the venture capital firm affiliated to Mizuho Bank, the second-largest Japanese bank in terms of assets. The firm has headquarters in Tokyo.The firm has ¥49.6 billion JPY under management, focusing on information technology and biotechnology investments. Over 600 Mizuho companies have gone public...
Global Corporate Group
Mizuho predecessors, the Dai-Ichi Kangyo BankDai-Ichi Kangyo Bank
The , abbreviated as , was one of the largest banks in the world during the latter half of the 20th century. It combined with Fuji Bank and the Industrial Bank of Japan in 2000 to form Mizuho Financial Group....
(“DKB”), the Fuji Bank
Fuji Bank
The was one of Japan's major banks during the post-World War II era. It combined with Dai-Ichi Kangyo Bank and the Industrial Bank of Japan in 2000 to form Mizuho Financial Group, and changed its name to Mizuho Corporate Bank in 2002 after transferring its retail banking operations to Mizuho...
(“Fuji”) and the Industrial Bank of Japan
Industrial Bank of Japan
The , based in Tokyo, Japan, was one of the largest banks in the world during the latter half of the 20th century.It combined with Dai-Ichi Kangyo Bank and Fuji Bank in 2002 to form Mizuho Financial Group.- History :...
(“IBJ”), had great control over many Japanese companies through keiretsu
Keiretsu
A is a set of companies with interlocking business relationships and shareholdings. It is a type of business group. The keiretsu has maintained dominance over the Japanese economy for the greater half of the twentieth century....
system. The three banks led the DKB Group
DKB Group
The or the Dai-Ichi Kangyo Group is the largest Japanese keiretsu.The group emerged after World War II and coalesced around the Dai-Ichi Kangyo Bank. The group's presidents began meeting regularly in 1971. Also that year the group's name developed from the merger of Dai-Ichi Bank and Nippon...
, Fuyo Group
Fuyo Group
is a Japanese keiretsu.The group emerged after World War II as a continuation of the Yasuda zaibatsu. It coalesced around Fuji Bank, and group presidents began meeting regularly in 1964...
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
Tokyo Stock Exchange
The , called or TSE for short, is located in Tokyo, Japan and is the third largest stock exchange in the world by aggregate market capitalization of its listed companies...
have dealings with Mizuho.
- Mizuho Corporate BankMizuho Corporate Bank, or MHCB, is the corporate and investment banking subsidiary of Mizuho Financial Group, the second-biggest Japanese financial services conglomerate...
- Mizuho Securities
Global Wealth and asset management
- Mizuho TrustMizuho Trust & Bankingis the trust banking arm of Mizuho Financial Group, the second-biggest Japanese financial services company. The bank's headquarters are in Yaesu, Chūō, Tokyo.-History:...
- Mizuho Private Wealth Management
- Mizuho Asset Management
- DIAM
Strategy affiliates
- Mizuho Financial Strategy, formerly Mizuho Holdings, Inc.
- Mizuho Research Institute
- Mizuho Information & Research InstituteMizuho Information & Research Instituteis a Japanese information technology company that provides systems integration supported by outsourcing, and consulting in the field of IT strategy, security, science, environment, and society. It has 4,049 employees ....
History
Mizuho was established originally as Mizuho Holdings, Inc. by the merger of Dai-Ichi Kangyo BankDai-Ichi Kangyo Bank
The , abbreviated as , was one of the largest banks in the world during the latter half of the 20th century. It combined with Fuji Bank and the Industrial Bank of Japan in 2000 to form Mizuho Financial Group....
, Fuji Bank
Fuji Bank
The was one of Japan's major banks during the post-World War II era. It combined with Dai-Ichi Kangyo Bank and the Industrial Bank of Japan in 2000 to form Mizuho Financial Group, and changed its name to Mizuho Corporate Bank in 2002 after transferring its retail banking operations to Mizuho...
and the Industrial Bank of Japan
Industrial Bank of Japan
The , based in Tokyo, Japan, was one of the largest banks in the world during the latter half of the 20th century.It combined with Dai-Ichi Kangyo Bank and Fuji Bank in 2002 to form Mizuho Financial Group.- History :...
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
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
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
Subprime mortgage crisis
The U.S. subprime mortgage crisis was one of the first indicators of the late-2000s financial crisis, characterized by a rise in subprime mortgage delinquencies and foreclosures, and the resulting decline of securities backed by said mortgages....
and lost 7 billion dollars on the sale of collateralized debt obligation
Collateralized debt obligation
Collateralized debt obligations are a type of structured asset-backed security with multiple "tranches" that are issued by special purpose entities and collateralized by debt obligations including bonds and loans. Each tranche offers a varying degree of risk and return so as to meet investor demand...
s 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
Calyon
Crédit Agricole Corporate and Investment Bank is Crédit Agricole's corporate and investment banking entity. With a staff of 13,000 employees in 58 countries, Crédit Agricole CIB is active in a broad range of capital markets, investment banking and financing activities...
, a unit of Crédit Agricole
Crédit Agricole
Crédit Agricole S.A. is the largest retail banking group in France, second largest in Europe and the eighth largest in the world by Tier 1 capital according to The Banker magazine. It is also part of the CAC 40 stock market index....
. 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 CDOs included the 'Aardvark', 'Tigris', and 'Delphinius' CDOs. The latter two involved the Magnetar
Magnetar Capital
Magnetar Capital is a hedge fund based in Evanston, Illinois. Among its many activities, the firm was actively involved in the collateralized debt obligation market during the 2006–2007 period...
hedge fund. Ironically, Calyon had sued Mizuho for hiring away Rekeda and other CDO experts in 2007.
Timeline
- 1864 - Yasuda-ya is founded as a private companyPrivately held companyA privately held company or close corporation is a business company owned either by non-governmental organizations or by a relatively small number of shareholders or company members which does not offer or trade its company stock to the general public on the stock market exchanges, but rather the...
. - 1883 - The Dai-Ichi Bank, Ltd. is established as the first bank in Japan.
- 1897 - The Nippon Kangyo Bank, Ltd. and the Industrial Bank of Japan, LimitedIndustrial Bank of JapanThe , based in Tokyo, Japan, was one of the largest banks in the world during the latter half of the 20th century.It combined with Dai-Ichi Kangyo Bank and Fuji Bank in 2002 to form Mizuho Financial Group.- History :...
are established as a governmental institution. - 1912 - Yasuda-ya is incorporatedIncorporation (business)Incorporation is the forming of a new corporation . The corporation may be a business, a non-profit organisation, sports club, or a government of a new city or town...
and renamed Yasuda Bank. - 1948 - Yasuda Bank is renamed the Fuji Bank, LimitedFuji BankThe was one of Japan's major banks during the post-World War II era. It combined with Dai-Ichi Kangyo Bank and the Industrial Bank of Japan in 2000 to form Mizuho Financial Group, and changed its name to Mizuho Corporate Bank in 2002 after transferring its retail banking operations to Mizuho...
. - 1950 - The Nippon Kangyo Bank and IBJ are privatizedPrivatizationPrivatization is the incidence or process of transferring ownership of a business, enterprise, agency or public service from the public sector to the private sector or to private non-profit organizations...
. - 1971 - The Dai-ichi Bank and the Nippon Kangyo Bank merge to form the Dai-Ichi Kangyo Bank, LimitedDai-Ichi Kangyo BankThe , abbreviated as , was one of the largest banks in the world during the latter half of the 20th century. It combined with Fuji Bank and the Industrial Bank of Japan in 2000 to form Mizuho Financial Group....
. - 1999 - DKB, Fuji and IBJ announce an agreement to consolidate the three banks' operations.
- 2000 - DKB, Fuji and IBJ establish a holding company named Mizuho Holdings, Inc.
- 2002 - DKB, Fuji and IBJ are officially and legally combined into two banks, Mizuho Bank, Ltd. and Mizuho Corporate Bank, Ltd.
- 2003 - Mizuho Financial Group, Inc. takes over the operations of Mizuho Holdings virtually.
- 2006 - Mizuho is listed on the New York Stock ExchangeNew York Stock ExchangeThe New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
under the stock symbol MFG. - 2009 - Mizuho established an alliance with and invested in Evercore PartnersEvercore PartnersEvercore Partners is an investment bank located in New York City. Evercore also has an investment management business through which the Company manages private equity and venture capital funds for institutional investors...
Inc.
Notable employees
- Yoichiro EsakiYoichiro Esakiis a Japanese politician of the Liberal Democratic Party , a member of the House of Representatives in the Diet . A native of Shinjuku, Tokyo and graduate of Keio University, he worked at the Industrial Bank of Japan from 1981 to 1993...
- member of the House of RepresentativesHouse of Representatives of JapanThe is the lower house of the Diet of Japan. The House of Councillors of Japan is the upper house.The House of Representatives has 480 members, elected for a four-year term. Of these, 180 members are elected from 11 multi-member constituencies by a party-list system of proportional representation,... - Rin IshigakiIshigaki Rinwas a Japanese poet. Her motifs were pots, the nameplate on the house, and those things people find in their daily life. Instead of using complicated words, she wrote with simple words and compositions. Her poetry was based on common sense...
- poet - Hirotaka IshiharaHirotaka Ishiharais a Japanese politician of the Liberal Democratic Party, a member of the House of Representatives in the Diet . A native of Kanagawa Prefecture and graduate of Keio University, he was elected to the House of Representatives for the first time in 2005 after an unsuccessful run in 2003...
- member of the House of Representatives, son of Shintaro IshiharaShintaro Ishiharais a Japanese author, actor, politician and the governor of Tokyo since 1999.- Early life and artistic career :Shintarō was born in Suma-ku, Kobe. His father Kiyoshi was an employee, later a general manager, of a shipping company. Shintarō grew up in Zushi... - Zenkichi KojimaZenkichi Kojimawas the mayor of Shizuoka, Shizuoka in Japan until April, 2011, when he was succeeded by Tanabe Nobuhiro. A graduate of the University of Tokyo, he was first elected mayor in 1998 after serving in the assembly of Shizuoka Prefecture for three terms....
- mayor of Shizuoka, ShizuokaShizuoka, Shizuokais the capital city of Shizuoka Prefecture, Japan, and the prefecture's second-largest city in terms of both population and area. It became one of Japan's 19 "designated cities" in 2005.-Geography:... - Takeaki MatsumotoTakeaki Matsumotois a Japanese politician of the Democratic Party of Japan, who is currently serving as the Minister of Foreign Affairs. A native of Tokyo and graduate of the University of Tokyo, he was elected to the House of Representatives for the first time in 2000 after running unsuccessfully as an independent...
- member of the House of Representatives - Shoichi NakagawaShoichi Nakagawawas a Japanese conservative politician in the Liberal Democratic Party , who served as Minister of Finance from September 24, 2008 to February 17, 2009. He previously held the posts of Minister of Economy, Trade and Industry and Ministry of Agriculture, Forestry and Fisheries in the cabinet of...
- Minister of FinanceMinister of Finance (Japan)The is the member of the Cabinet of Japan in charge of the Ministry of Finance. This position was formerly cited as being Japan's most powerful and one of the world's, because Japan had historically held the largest foreign exchange reserves...
, Minister of State in charge of Financial Services (2008–2009) - Kei OguraKei OguraKei Ogura is a Japanese singer, songwriter and composer. He was also a bank clerk of Dai-Ichi Kangyo Bank, after graduation from the University of Tokyo. His musical career was in parallel with banking activity.His major works include Saraba seishun and Oretachi-no-tabi...
- singer - Stanley PraimnathStanley PraimnathStanley Praimnath is a survivor of the attack on the World Trade Center on September 11th, 2001. Praimnath worked as an executive for Fuji Bank on the 81st floor of the South Tower, the second to be attacked...
- survivor of the destruction of the World Trade CenterWorld Trade CenterThe original World Trade Center was a complex with seven buildings featuring landmark twin towers in Lower Manhattan, New York City, United States. The complex opened on April 4, 1973, and was destroyed in 2001 during the September 11 attacks. The site is currently being rebuilt with five new...
on September 11th, 2001September 11, 2001 attacksThe September 11 attacks The September 11 attacks The September 11 attacks (also referred to as September 11, September 11th or 9/119/11 is pronounced "nine eleven". The slash is not part of the pronunciation... - Alexander Rekeda, - structured several deals involving collateralized debt obligations backed by subprime mortgagesSubprime lendingIn finance, subprime lending means making loans to people who may have difficulty maintaining the repayment schedule...
. - Mitsu ShimojoMitsu Shimojois a Japanese politician of the Democratic Party of Japan, a member of the House of Representatives in the Diet . A native of Matsumoto, Nagano and graduate of Shinshu University, he was elected for the first time in 2003 after an unsuccessful run in 2000.- External links :* in Japanese....
- member of the House of Representatives - Yukio TomiokaYukio Tomiokais a Japanese politician of the Democratic Party of Japan, a former member of the House of Councillors in the Diet . A native of Kawaguchi, Saitama and graduate of Waseda University, he worked at the Fuji Bank from 1987 until 2003 when he ran unsuccessfully for the House of Representatives...
- member of the House of CouncillorsHouse of CouncillorsThe is the upper house of the Diet of Japan. The House of Representatives is the lower house. The House of Councillors is the successor to the pre-war House of Peers. If the two houses disagree on matters of the budget, treaties, or designation of the prime minister, the House of Representatives...
See also
- ATMAutomated teller machineAn automated teller machine or automatic teller machine, also known as a Cashpoint , cash machine or sometimes a hole in the wall in British English, is a computerised telecommunications device that provides the clients of a financial institution with access to financial transactions in a public...
- Dai-Ichi Kangyo BankDai-Ichi Kangyo BankThe , abbreviated as , was one of the largest banks in the world during the latter half of the 20th century. It combined with Fuji Bank and the Industrial Bank of Japan in 2000 to form Mizuho Financial Group....
- Fuji BankFuji BankThe was one of Japan's major banks during the post-World War II era. It combined with Dai-Ichi Kangyo Bank and the Industrial Bank of Japan in 2000 to form Mizuho Financial Group, and changed its name to Mizuho Corporate Bank in 2002 after transferring its retail banking operations to Mizuho...
- Industrial Bank of JapanIndustrial Bank of JapanThe , based in Tokyo, Japan, was one of the largest banks in the world during the latter half of the 20th century.It combined with Dai-Ichi Kangyo Bank and Fuji Bank in 2002 to form Mizuho Financial Group.- History :...
- List of banks in Japan
External links
- Mizuho Financial Group
- Mizuho Financial Group Inc. by Google FinanceGoogle FinanceGoogle Finance is a website launched on March 21, 2006 by Google. The service features business and enterprise headlines for many corporations including their financial decisions and major news events. Stock information is available, as are Adobe Flash-based stock price charts which contain marks...
- Mizuho Watch by Inner City Press