Sheila Bair: Certain Bank CEOs Will Be Replaced

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The Federal Deposit Insurance Corp. chairman isn't naming any names, but some CEOs might want to watch their steps in the coming months. "Management needs to be evaluated," Sheila Bair told Bloomberg's Al Hunt today. "Have they been doing a good job? Are there people who can do a better job? There will be an evaluation process. We're requesting it as part of the capital plan." Will some chief executives end up being replaced? Hunt asked. Bair's response: "Yes."

Ouch. How must the CEOs most often recommended for the chopping block have reacted to this news? We don't know, but we imagine that over at Citigroup HQ Vikram Pandit has retreated into his office, closed the door, put on a Slanket, and is escaping into whatever the Cartoon Network has to offer at this time. And that down in North Carolina, Ken Lewis has retreated into a gigantic bottle of gin.

Bair Says Some Bank Chiefs Will Be Replaced in Next Few Months [Bloomberg]