Chinese banks have a chronic problem with issuing improper loans.

Schultz has denied any knowledge of the major violations, improper loans made by the Virginia Student Aid Foundation.

Together with three associates he was charged with organising 64,500 million yen in improper loans.

He acted after a subordinate was arrested on charges that he had taken almost $750,000 for arranging $170 million in improper loans to a corporate raider.

They included improper interest-free loans to athletes and graduate assistant football coaches.

The company's former general counsel was also indicted, on charges that he falsified company records to conceal $14 million in improper loans to himself.

In China, where the stock market had been soaring, the government had warned banks about improper loans to finance stock speculation.

But its existing deals are neither improper loans nor illegal pension assignments, he said.

The abuses at Virginia, 13 in all, involved improper interest-free loans for athletes and graduate assistant coaches.

Her bill would entitle homeowners to cite an improper loan as a legal defense to prevent foreclosure.