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FDIC Bair: Bank Chiefs Need to Go

Posted By Barry Ritholtz On May 16, 2009 @ 7:44 am In Bailouts,Markets,Regulation | Comments Disabled

“Management needs to be evaluated . Have they been doing a good job? Are there people who can do a better job? I think the review needs to go with both the management and the board as well, absolutely . . .

I think there will be an evaluation process. We’re requesting it as part of the capital plan.  So to the extent that it means oversight of adequacy of management and boards, I think that’s absolutely appropriate for regulators to do.”

-FDIC chief Sheila Bair [1], responding to the questions “Why are some of these other banks’ CEOs still there?”

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The FDIC’s Sheila Bair continues to be the most interesting regulator in Washington. She appears fair minded by tough, and is unafraid to speak her mind.

Bloomberg:

“Bank chief executives will be replaced in the next couple of months as the U.S. scrutinizes financially troubled lenders, Federal Deposit Insurance Corp. Chairman Sheila Bair predicted.

“Management needs to be evaluated,” Bair said yesterday on Bloomberg Television’s “Political Capital with Al Hunt [2],” being broadcast this weekend. “Have they been doing a good job? Are there people who can do a better job?”

The FDIC released a statement several hours after the interview characterizing Bair’s comments. Bair said management changes “could happen” based on capital-raising plans submitted to the government. “She did not refer to CEOs specifically,” the agency said in an e-mailed statement. “Bair also did not suggest the federal government will remove the bank CEOs,” the statement said.”

When you run your firm into the ground, lose billions in company money, cost the taxpayers 100s of billions of dollars, is it really asking too much that you should be fired, and your phony bonuses based on phantom profits disgorged?

This is long overdue . . .

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Source:
Bank Chiefs Will Be Replaced in Next Few Months, Bair Predicts [1]
Alison Vekshin
Bloomberg, May 16 2009

http://www.bloomberg.com/apps/news?pid=20601087&sid=ayhAHRWdbDqw&


Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2009/05/bair-bankchiefs-needtogo/

URLs in this post:

[1] FDIC chief Sheila Bair: http://www.bloomberg.com/apps/news?pid=20601087&sid=ayhAHRWdbDqw&

[2] Political Capital with Al Hunt: http://www.ritholtz.com/blog/2009/05/fdics-bair-on-us-banks-executives-political-capital/

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