Global General

Special

Newsmaker

Asia Pacific

America

Middle East

Europe

Africa

US government may oust senior bank executives

(Xinhua)
Updated: 2009-04-06 14:05

WASHINGTON - US Treasury Secretary Timothy Geithner said on Sunday that the government may oust the senior management and boards of directors if their banks require "exceptional assistance" in the future.

Related readings:  Bank execs vow to work with Obama on recovery plan  Feds unveil plan to sop up bad bank assets

"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 that it's the kind of restructuring for them to emerge stronger," he said.

"And where that requires a change of the management of the board, we'll do that," he added.

"We've already seen a substantial number of the largest banks in our country fail or be absorbed by other institutions, no longer existing at independent institutions," said Geithner. "And where the government has acted, like in Fannie (Mae) and Freddie (Mac) or like in AIG, where we've had to do exceptional things to stabilize them, we have replaced the management and the board."

"And we've done that because we want to make sure that taxpayers' assistance is going to make these companies stronger, make sure there's accountability, make sure it comes with strong conditions. And we'll do that in the future if that is necessary," he said.