ABA Banking Journal - December 2010 - (Page 12)
Rough time for out-of-work bankers
Former execs of failed or troubled banks face hurdles to being hired elsewhere
Officially, CAMELS ratings are known only by the bank, its regulators, and one or two other confidential players. But the occasional hint gets on the grapevine. Case in point: A de novo banker looking for a chief credit officer would get calls from headhunters pushing candidates, who, along with the bona fides of the banker, would add, “This individual is ‘approvable’.” What this banker was being told, subtly, was that there wouldn’t be regulatory pushback (or worse) if the bank hired the executive. At issue was Section 32 of the Federal Deposit Insurance Act. Under the act, approval must be sought (30 days in advance) for the proposed addition of a director or a new senior executive officer if a bank is covered. Covered institutions include: a bank not in compliance with minimum capital requirements or “otherwise in troubled condition,” or a bank that is subject to a plan executed under prompt corrective action. (De novo banks may be subject to similar review.)
12 | ABA BANKING JOURNAL | December 2010
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