November 29, 2016 / 3:21 PM / a year ago

Hedge fund calls for removal of First NBC Bank CEO


Nov 29 (Reuters) - A shareholder of First NBC Bank Holding Co. has called for the CEO’s removal, saying a change at the top would give more confidence to the New Orleans lender’s investors.

Activist hedge fund Clinton Group, which has not disclosed the size of its holding in the bank, first began agitating for changes at the small bank early this month. Clinton’s second letter, disclosed on Tuesday, is the first time the hedge fund has called for the removal of Ashton Ryan, the bank’s president and CEO.

“I would strongly suggest that the board properly execute its fiduciary duty and address the material weaknesses in management by replacing the current chief executive officer as soon as practicable,” Clinton Group Managing Director Scott Arnold said in a letter addressed to the company’s board.

First NBC Bank was not immediately available for comment.

Reporting by Michael Flaherty; Editing by Dan Grebler

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