(Recasts, adds FDIC comments)
NEW YORK May 15 The Federal Deposit Insurance
Corp disputed on Friday a report that said Chairman Sheila Bair
believes some U.S. bank chief executives will be replaced in the
next couple of months as regulators assess lenders' financial
The FDIC said the Bloomberg News report, which cited a
television interview to be broadcast this weekend, was
"Chairman Bair said that management changes could happen
based on the capital plans that an institution must submit to
the government," the FDIC said in a statement. "She did not
refer to CEOs specifically and the comment was in the context of
capital plans submitted by the institutions. Chairman Bair also
did not suggest the federal government will remove the bank
Last week, regulators told 10 of the largest U.S. banks to
raise a combined $74.6 billion of capital to help withstand a
potentially deep recession.
The banks that were told by the government to raise more
capital must submit capital recovery plans to the government,
which must include a review of their management and boards to
determine if they have appropriate skill sets.
The FDIC also submitted a copy of the interview transcript.
"Management needs to be evaluated," Bair said on Bloomberg
TV's program "Political Capital with Al Hunt."
"Have they been doing a good job? Are there people who can
do a better job," Bair said. Asked about some managers being
replaced, Bair replied, "Yes," according to the report.
In the last year, the federal government has ousted chief
executives of American International Group Inc (AIG.N), Fannie
Mae FNM.P and Freddie Mac FRE.P after taking big ownership
In March, it pushed out General Motors Corp (GM.N) Chief
Executive Rick Wagoner after concluding the automaker's recovery
plan did not go far enough.
(Reporting by Jonathan Stempel and Karey Wutkowski, editing by
Leslie Gevirtz and Matthew Lewis)