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A US regulator on Friday predicted that chief executives and directors of some of the banks that underwent the stress tests could lose their jobs,

Regulator expects bank chiefs to lose jobs | FT

By Francesco Guerrera and Nicole Bullock in New York

Published: May 16 2009 00:10 | Last updated: May 16 2009

A US regulator on Friday predicted that chief executives and directors of some of the banks that underwent the stress tests could lose their jobs, in another sign of the government’s desire to have a say in the running of bailed-out companies.

Sheila Bair, chairman of the Federal Deposit Insurance Corporation, said the authorities could replace management and boards at some of the 10 banks that were ordered to add fresh capital after the tests.

“Management needs to be evaluated,” she told Bloomberg television. “Is this the right skill set? Have they been doing a good job? Are there people who can do a better job?”

Asked whether some chief executives and directors would be replaced when banks present their capital-raising plans in the next few weeks, she said: “Yeah, I think there will be an evaluation process. We’re requesting it as part of the capital plan.”

Written by Colin Henderson

May 16, 2009 at 22:19

Posted in Uncategorized

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