Aozora Bank has been reprimanded by the Financial Services Agency for giving information on its customers to its major shareholder, Cerberus Group, a U.S. investment fund bidding for greater control of the bank, FSA officials said Wednesday.
The FSA verbally reprimanded the bank, which in January admitted it had responded to a request from Cerberus for details on outstanding loans and other customer data between January and March 2002.
Aozora Bank said it provided the data in two batches as Cerberus was trying to confirm the state of the bank's assets in connection with a bid to purchase the 48.8 percent stake owned by Softbank Corp.
Aozora, according to an FSA official, said there was no wrongdoing but admitted it was to blame for conveying the data without approval from the board of directors -- a procedure the bank claims has since been improved.
The FSA accepted Aozora's explanations and opted not to impose a tougher punishment, while urging the bank to improve its internal system of controlling customer information.
Cerberus is locked in a bidding battle with Sumitomo Mitsui Financial Group Inc. for Softbank's interest.
Many in the financial industry expect Cerberus to outbid Sumitomo Mitsui due to its preferential negotiation rights.
Aozora Bank is the successor of the failed Nippon Credit Bank.