Dai-Ichi Kangyo Head Office Raided

Dai-Ichi Kangyo Bank Ltd. shares fell as much as 3.8% as Tokyo prosecutors searched its head office and Japan’s minister of posts said the world’s largest savings institution will suspend business with the bank. Prosecutors searched the bank for evidence that it loaned money to an alleged corporate racketeer without collateral. On Thursday, Japanese authorities arrested three executives and a former managing director of the bank on suspicion of making the loans. Japanese Minister of Posts and Telecommunications Hisao Horinouchi said that his ministry will suspend dealings with the bank because of the loan scandal. The ministry oversees the postal savings system, which holds $1.73 trillion in deposits. Finance Minister Hiroshi Mitsuzuka said he is considering ordering unannounced spot inspections of Japanese banks following the loan scandal.