USA :Fed demands management review at bank
A Cleveland USA bank is ordered to shape up, in the most fundamental fashion.
The Federal Reserve Bank and the Federal Reserve Bank of Cleveland have entered into a written agreement with Metamoro Bancorp Inc. and Metamoro State Bank. The agreement demands a wide ranging management review and the urgent appointment of management with appropriate expertise. The requirements include that within ten days, must retain an independent consultant acceptable to the Reserve Bank to conduct a review of the composition and structure of the Bank's management and board of directors and to prepare a written report of findings
As a minimum, the review is to "address, consider and include" the identification of the type and number of officer positions needed to manage and properly supervise the Bank's affairs; identify and establish directors' committees required to oversee and guide bank management; evaluate each bank officer to determine whether he, as an individual possesses the ability, experience and other qualifications needed to competently perform current and anticipated duties including the ability to provide appropriate supervision of the lending, audit and interest rate risk management functions, to follow established policies and procedures, to restore and maintain the bank to a safe and sound condition and to comply with the terms of the agreement with the Fed.
The review is also to set out a plan to take in additional or replacement personnel having the requisite skills
Tellingly, the management plan is also to provide for "orderly management succession and, at a minimum identify the individual(s) at the bank who are considered to have the potential for advancement or promotion."
The agreement with the Fed includes procedural reform which are designed to address deficiencies in management practice.
The full text of the agreement is at World Money Laundering Report: Resources
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