The former chairman of a major Japanese bank was arrested in connection with a growing racketeering scandal that has jolted this country's financial industry. Tadashi Okuda had already resigned as chairman of Dai-Ichi Kangyo Bank in mid-June as part of a reshuffle of top management aimed at restoring public confidence in the bank. Eleven executives at Dai-Ichi Kangyo, one of the world's largest banks, have now been arrested. Another former chairman of the bank, who was being questioned by prosecutors, hanged himself last week. The Tokyo public prosecutors office said in a statement that Okuda helped arrange loans to a suspected racketeer, Ryuichi Koike, from 1994 to 1996, despite knowing he was unlikely to be able to repay them.