Treasury chief puts bailed-out bank CEOs on notice

[Political Heretic]

The government may require new faces in executive suites at banks requiring "exceptional assistance" in the future, Treasury Secretary Timothy Geithner said Sunday.

Critics of the Obama administration's move last weekend to force out the chairman of General Motors Corp., Rick Wagoner, as a condition for possible additional federal loans say that strong government intervention contrasts with measures placed on the financial industry in return for billions in infusions.

Geithner denied there was a double standard and put banks on notice that they may need to change leadership teams in exchange for accepting more money in the future.

"If, in the future, banks need exceptional assistance in order to get through this, then we'll make sure that assistance comes with conditions, not just to protect the taxpayer but to make sure this is the kind of restructuring necessary for them to emerge stronger," he told "Face the Nation" on CBS. "And where that requires a change of management of the board, we'll do that."

http://hosted.ap.org/dynamic/stories/G/GEITHNER_CANNING_CEOS?SITE=NEYOR&SECTION=HOME&TEMPLATE=DEFAULT

I didn't get to see Face the Nation today, but the follow up question I think I would have wanted to ask is, "What is the criteria for requiring a change of management - how would you make that determination?"

Still though, I like this headline a lot! :D

[Skittles]

1. stung by the criticism that only GM being held accountable

yup

[FrenchieCat]

4. I stated at the time that if they decided to get rid of Bank CEO

after the GM chief, some asshole would call it politically motivated.....
even if it was not.

Here's my post one day after Wagoner was sacked, using articles from the day that Wagoner was sacked. http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=132&topic_id=8308325&mesg_id=8308359

This article was out the day that Wagoner was sacked, and before any backlash was printed about....

So how do you figure?


Wagoner's exit puts BofA CEO Lewis in hotseat
Mon Mar 30, 2009 3:29pm EDT

NEW YORK (Reuters) - Bank of America Corp Chief Executive Kenneth Lewis may be the next corporate boss to feel the heat after the administration forced General Motors Corp Chief Executive Rick Wagoner to resign in return for further government assistance.

The second-largest U.S. bank has received $45 billion from the government, making it one of the biggest recipients of government bailout money in the banking system.

Big shareholders have been calling for Lewis to step down since Bank of America announced in January it took a $20 billion government bailout to secure the acquisition of troubled Merrill Lynch & Co, which lost almost $16 billion in the last quarter of 2008.

The government may now add to the pressure from shareholders, analysts said. The sudden departure of Wagoner after nine years in the top job at GM signals the Obama administration is looking for management changes at bailed-out companies.

"His longevity in the job is probably very much in question," said Keith Wirtz, chief investment officer of Fifth Third Asset Management and a former CIO at a Bank of America subsidiary. Fifth Third holds shares in the bank.
http://www.reuters.com/article/newsOne/idUSTRE52T6DP20090330?pageNumber=1&virtualBrandChannel=10112

[Clio the Leo]

2. And I like the fact that YOU like this headline. ;-)

I can always handle criticism from those who will also hand out praise when praise is due. :)

[Political Heretic]

3. What I want is for America to fucking WORK finally. I want that more than I want to be "right"

[BeFree]

5. Easy to get them to leave

Just give all of them a billion dollar bonus to leave.

Nice work if you can get it, eh?

[Alcibiades]

6. But only in the future

This is a step forward, but they should fire them all now.