Tokyo Barrister: Start the law firm bankruptcy

Chapter 713 President

A former Tokyo-based director could not help but stand up and said, "Hanzawa! Let's not talk about whether your investigation reports are true or not! What is your method of dealing with the Financial Services Agency? Are you going to let the president of our Tokyo Central Bank accept the investigation and questioning of the Financial Services Agency?!"

"The inspection by the Financial Services Agency is an issue that cannot be avoided!" Hanzawa responded.

"Ridiculous! This is absolutely ridiculous!!"

"Hanzawa! Do you know what would happen if the president of our Tokyo Central Bank was called to the Financial Services Agency for questioning?" another director said indignantly, "That would be a suicidal act for our bank's reputation. How would our competitors exaggerate it?! And how would our customers view us?!"

Many people immediately agreed.

Indeed, if this matter involves the president, it will be a huge blow to the Tokyo Central Bank. Although some directors present also participated in factional struggles, they were not as extreme as Shirai and Yamato, and they did not want to make such a situation too big.

"The clues we can find will be discovered by the Financial Services Agency sooner or later," Hanzawa said. "The cover-up methods we can think of will be discovered by the Financial Services Agency sooner or later. For fraudulent methods such as 'empty deposits and empty withdrawals', they can be found immediately as long as the cash records already in the account are carefully traced. This is something that you and I cannot cover up no matter what."

"Where do you want to put our bank?!" another director asked.

"Based on my judgment as a banker, it is not difficult for the Financial Services Agency to discover this matter." Hanzawa looked up at President Nakano. "Whether Fukuba Real Estate has a bad loan or not, and whether there is any false reporting, the president is here. I would like to ask President Nakano to clarify a few words."

When Nakano heard Hanzawa's words, there was still no expression on his face.

He still had a stern, serious look on his face.

Like an older teacher.

All the directors' eyes were focused on Nakano.

They were all quietly waiting for the bank's top executive to take action.

"I think the word 'credit' that Hanzawa mentioned just now is very correct," Nakano said. "Credit is the foundation of a bank. Without credit, a bank cannot survive in the long run."

"Regarding the method of 'empty storage and empty withdrawal' mentioned by Hanzawa, I admit that I did use it." President Nakano said.

Yes... indeed used?!

Once again, the board members were shocked.

The bank president actually directly admitted to using the "empty deposit and empty withdrawal" method.

How is this going? !

Even Vice President Shirai and former Managing Director Owada, who are members of the industrial sector, were so surprised that they were speechless. They had never expected Nakano to admit it so straightforwardly.

This is incredible!

The bank president took the initiative to admit his illegal behavior, but no one would believe it!

Nakano continued, "At that time, Fukumoto Real Estate did face an operational crisis. But I judged at the time that Fukumoto Real Estate still had a chance to turn around, so I took the initiative and adopted the method of 'empty withdrawal and empty deposit' to cover up the fact that Fukumoto Real Estate was temporarily unable to repay the loan."

"However, what Hanzawa said next was not correct. I adopted the "empty withdrawal and empty deposit" method not to cover up the bad debt, but just to extend the loan to Fukuda Real Estate. Later, Fukuda Real Estate also resumed normal repayment of principal and interest. After careful judgment, I believed that the risks in the real estate industry had not been completely eliminated, so I transferred this 300 billion yen loan to Pacific Fractal through an introduction."

Nakano's words immediately made the incident even more confusing. According to Nakano, Fukuba Real Estate subsequently resumed its ability to repay the principal and interest. So, the 300 billion yen of non-performing loans acquired by Yoshizawa Trust were not loans from Fukuba Real Estate. So, which loan project of the bank did Yoshizawa Trust acquire?

Yamato immediately shouted, "President Nakano, you just admitted the illegal behavior of 'empty deposits and empty withdrawals', but you did not admit that there was any false statement operation. Are you sure about this?"

"I confirm." Nakano said calmly.

"Well, since there has been an illegal act of 'empty deposits and empty withdrawals', there is a high suspicion that the next operation will be false reporting of the financial statements! Can President Nakano guarantee that what he said is true and can withstand the investigation of the Financial Services Agency?" Yamato pressed on.

"Yes, I did not engage in any illegal operations such as false reporting of financial statements," Nakano continued.

"If so, what then?!"

"I am willing to resign as president and take responsibility," Nakano said.

The president's words once again caused an uproar in the board of directors.

Hanzawa didn't understand what the president was thinking for a moment. Although he hadn't had much contact with President Nakano, he intuitively felt that the president couldn't be that simple. Now, he admitted to the "empty deposit and empty withdrawal" method, but denied the "false statement" operation, and even gambled on the position of president.

Hanzawa had no idea what was in the mind of the bank president.

Shirai smiled to himself after hearing Nakano's promise. Today's board meeting was not in vain. Two big fish were caught. One was Hanzawa. This guy actually investigated the president. The second big fish was Nakano. He actually admitted the illegal operation of "empty deposit and empty withdrawal" in front of everyone.

In fact, Shirai knew that Nakano had done so.

He was planning to use Nakano's past violations to frame the Yoshizawa Trust incident on Nakano. The arrangement of the 300 billion yen loan to acquire Fukuba Real Estate was introduced to Nakano anonymously by Shirai through an intermediary. And all of this was done for today's action.

"I hope President Nakano keeps his word," Shirai said. "No matter what, we are all members of the bank. We all hope that the future of the Tokyo Central Bank will be better. It would be best if President Nakano was not involved in false balance sheet operations. But if he is, then in order to maintain fairness, even the president must accept the due punishment!"

At the board meeting, Vice President Shirai's ambition was clearly revealed.

If President Nakano is ultimately unable to prove his innocence, he will have to resign from his position as president.

The factional struggle within the Tokyo Central Bank suddenly became intense.

The series of dramatic twists and turns in the board meetings were so dramatic that many directors did not have time to digest the amount of information contained therein.

At this critical moment, a secretary suddenly broke into the board meeting.

He looked flustered and anxious:

"Oh no! The Financial Services Department is here again! They want to retrieve the cash account of the sales department!!!"

(End of this chapter)