Management Turnover as Change Agent

Friday, August 1, 2008

House Cleaning Continues at Wachovia

Wachovia's new CEO, Robert Steel, continues to clean house (see earlier blog).  Today the bank formally announced that the bank's chief risk officer, Donald Truslow would resign as soon as his replacement was found.  Truslow had been with the bank since 1980.  According to Paul Davis of the American Banker,
Wachovia's top risk management functions have attracted mounting scrutiny since the company's October 2006 purchase of Golden West Financial Corp., an Oakland thrift that specialized in adjustable-rate mortgages. The company has also gotten unwelcome attention from regulators on other issues.
Steel is working hard to make the impression he is in charge and intends to turn the ship around. There is probably more management changes to come.  The real question remains, what can Steel and his team do to help the struggling bank?  Stay tuned

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