Heads will roll.
Federal Deposit Insurance Corp. Chairman Sheila Bair said some bank chief executives will be replaced in the next couple of months as the U.S. scrutinizes lenders subjected to tests to evaluate their financial strength.
“Management needs to be evaluated,” Bair said today on Bloomberg Television’s “Political Capital with Al Hunt,” to be broadcast this weekend. “Have they been doing a good job? Are there people who can do a better job?”
So let us ask what may or may not be an obvious question: Why exactly do we need the government to make management changes at the top that they could not force without controlling a majority of common if not for the particular accident that they happen to have a great deal of political power at the moment?
We suspect two potential answers:
1. Shareholders just don’t care that much to change management and the government is overreaching “because we can.”
2. It’s basically impossible to unseat entrenched management in a public company and government is performing a useful service by cracking the regulatory whip?
Discuss.
Bair Says Some Bank Chiefs Will Be Replaced in Next Few Months [Bloomberg]
Will be interesting to see how this is going to affect the 2010 election contributions.
3. The regulator has the right to remove management.
4. Without deposit insurance, banks of this size would not exist.
5. Without taxpayer money, these CEOs would have been out of jobs last year as their banks blew apart.
Meanwhile Ken Lewis and Vikram Pandit are all thanking god that the government is full of people that surely suck a$$ at chess…
So, EP and Bess write the same article, well the same topic as Bess’ was actually funny, to show the differences between the two’s political leanings?
Your 2nd reason gave Lenin a raging hard on from beyond the tomb.
She Bair, baby… Let’s pick up some Boones, vaseline, duct tape, rubber gloves and bang this thing out like two sexually depraved baby boomers.
Yours,
KL
TGFD’s recommendations for bank CEO replacemants:
GS…Medea Benjamin (CodePink founder)
BAC..Al Sharpton
C….Al Franken
MS…Jesse Jackson
WFC..Leon Trotsky
The Guy from Delaware
Change (in corporate governance) that you can believe in!!
Big dyke, just like Eleanor Roosevelt.
Goldman Sachs is a criminal enterprise, and nobody in our government has the balls to revoke their federal bank charter.
Do that, and you won’t need to worry about replacing Lloyd.
The Guy from Delaware
@8 funny!
Unrelated: Anybody else want to throw something at the TV every time those morons on CNBC say “green shoots”? Wonder if there’s any way to pull all the transcripts and run some sort of query on how many times it’s been said. I’ll set the over / under at 1,000 to start.
We have started down a very bad and steep slope. First they tell how to manage our businesses and then they tell us who will manage them and how much they are allowed to earn. Even Russia was not this bad, was it???
GS…Cheney
BAC.. “W”
C…. Rove
MS… Gonzo
WFC.. Kudlow
Let them fix what they f*cked up. We can all cry about the government taking over the banks (not true), and use GOP sound bites like socialism and “transfer of wealth”(IRS has been doing it for 75 years)but the fact remains that Obama inherited a mess from W and his lunatic fringe advisors.
Consider the parallels between Bair and Pandit and Lewis and Co.”:
1. Heads of large unwieldly bureaucracies that have been mismanaged and are, arguably, on the verge of failure.
2. Cannot/will not be removed due to the lack of power or willpower on the part of their consituents.
3. Even if replaced, successor (if there is a willing one) will face the same challenges and likely fail.
@2, well done.
We were somewhere around Charlotte on the edge of finance when the drugs began to take hold.
i am so sick of hearing people say that obama “inherited” the mess. an inheritance is something that is given to you that you probably don’t have much control over. obama not only asked to take over the w mess, he begged the american people to let him. don’t forget that.
@16- yeah, and? people are saying that he “inherited” it in reference to the halfwits claiming he caused this problem. obama is not complaining about now being in possession of it. grow a clue.
LOBSTERCLOPS is not Porter Stansberry.
1 The election contributions issue is changing, with the growing importance of small contributions generated over the net. In fact, that’s one of the reasons given for supporting the overturn of McCain Feingold. That the process has changed, and with millions of small participants, no one is buying candidates anymore.
I wouldn’t mind pounding her in the ass.
Eric Holder
RELEASE THE BEES!
@12, @16, you should have been complaining when you were gettin “the american dream” for no cash down…maybe a socialistic system is what you crave for eh?
Two words: Eminent Domain
Margaret Brennan at the NRA event! Wow! Larry Ludlow was going crazy over her holding the assault rifle.
Merge all major banks into one, under the visionary leadership of Lobsterman, Wideclops, and Lobsterclops.
Problem sorted.
One of the things you learn from years of dealing with finance people, is that you can turn your back on a person, but never turn your back on Boone’s. Especially when it’s waving a razor-sharp hunting knife in your eye.
About time.
But doubt that it will happen the way you imagine. After all, some of these guys need to spend more time with their families.
Establish dominance!
Hey! Say what you want about me but I will be damned if I am going to stand here and let you talk about Eleanor Roosevelt in that fashion!
- Ellen Degeneres
You know how I know you are gay?
Hubble says that the universe was around 13.7 billion years ago. So. Who gives a fuck?
I sure hope someone makes a good veirosn of “There will be Blood” regarding Wall Street. And I don’t mean Wall Street 2. They could even have good product placement for Boone’s.
Why talk about this before you know if your actually going to do anything?
Isn’t the FDIC there to ensure confidence in the banks, not make open ended statements like this that can undermine the stability they are set up to provide.
Why not look into it, decide what you want to do, then I dunno maybe issue a press release or if you really want to be on TV have a press conference if you decide to actually do something. Someone in this position shouldn’t be dropping little sound bites like this on weekend talk shows that’s for sure.
“1. Shareholders just don’t care that much to change management and the government is overreaching ‘because [~yes~] we can.’” Get it right Bess.
22 conveniently forgets that a good part of that american-dream-for-no-money-down game benefitted Wall Street most of all. So shut your pie hole
@35…if you are on the street, you are there to make money…go to the third world to do charity (contingent on Uncle Sam sending you the funds..funded by unfortunately the street)…get that dope head…BHO will eventually make ya do it…itz coming…BHO cult-ist
36 I am on the street to make money, but unlike you I’m not gonna blame the no money down culture for the street’s troubles after benefitting from it so much not that long ago. Little girls like you have no problem preaching heads I win, tails its other peoples problems. That’s not how men play the game.
@37….not sure what you said there…must be a chartist…secular bear market eh?
If the regulators were gathering in Charlotte, I felt the drunken idiot CEO culture should be represented as well. And there was a certain bent appeal in the notion of running a savage burn on one company, and then just wheeling across town and checking into another. Me and a thousand ranking regulators from all over America. Why not? Move confidently into their midst.
Community organizers to the rescue of the banking sector! The auto sector. Obama’s suit maker!
Pfluer
Mozillo could run all these banks with one hand tied behind his back! After he fixes this little bank issue…..A to the M in 2012!
@ 15 & @ 26 … well played
Guest@#36…
“…if you are on the street, you are there to make money…”
There is a difference between earning money and stealing money.
TGFD guotes #35, “So shut your pie hole.”
The Guy from Delaware
Guest@#38…
“As always #38 your brain is too small to comprehend that #37 might be saying something truthful.”
TGFD lifted the above from another thread where it was used on me.
I think it appropriate that TGFD share it with you now.
The Guy from Delaware
TGFD or GTFD?
@10 – Much less expensive (fewer TV’s to replace) and more fun – do a shot every time someone on CNBC says green shots.. er, shoots.
@15 – Wait until they see the bats!
throw the bums out.
the government, of course.
Hamptons 09 Babay!