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Jul 10, 2023Liked by Mark Kennedy

Does MFG have a new CEO? This all sounds like classic banker greed from a new CEO who wants to make a name and a big pile of stock options for himself. Isn't the problem with higher-margin business that those higher margins are there to compensate for higher risks? Should MFG be taking higher risks just when the global economy is stumbling into a deep recession? Or should it be grateful in such circumstances for its portfolio of boring, low-risk home mortgages?

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Thanks for reading and for your comments. Mizuho Financial Group switched out its top management in February 2022, with Masahiro Kihara named president of Mizuho Financial Group. Kihara is definitely focused on other priorities that are likely to generate greater top line growth and higher profits than the policies of his predecessor. I bet that Mizuho will deploy some of its resources to gobble up regional banks in the U.S. A more aggressive approach seems to be the only way to realize its long-term BHAG, as mentioned in the article.

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Jul 10, 2023Liked by Mark Kennedy

Call me old and cynical; but, having seen so many CEOs try something similar over the decades, I'd say there's a giant ego and bad timing getting in the way of good strategy and decision making. I hope I'm proved wrong!

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There is no doubt that Kihara must have a sizeable ego, as would be required of virtually anyone in charge of such a large, influential organization. He probably has some major personal incentives attached to the achievement of the group's long-elusive BHAG. It probably cannot get much worse than the horrible situation in which his predecessor found himself (series of ATM service glitches, etc.). We'll all have to watch and see what happens.

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