Business

Chris Cantell Discusses Business: Thomson ousted
by Claudia Sonea

Whenever something goes wrong an escaping goat must be found. In the case of the US' fourth-largest bank the escaping goat was CEO Ken Thompson who starting Monday is being forced to retire and become former CEO. He will be replaced by Chairman Lanty Smith who will reinforce the independency of the bank in spite of rumors of possible candidate to a take over. Deutsche Bank analyst Mike Mayo reinforces that US mortgage market and economy on the verge of recession has affected the bank and the second quarter release will show a great deal of losses. Thomson's firing is therefore not a surprise as at the shareholder meeting that took place in April he was asked to resign. The reasons were the cutting of dividends, the purchase of home lender Golden West which led to a $2 billion loss. Thomson will not receive not even incentives after 32 years of career, yet as compensation he got a $1.45 million in investing. He stated to have been proud in leading the bank and it was a great honor for him. Smith that will be replacing him until a suitable candidate will be found. The action taken by Winston-Salem-based Wachovia is one from many other similar actions like that of Washington Mutual Inc. (Kerry Killinger is no longer its chairman). Banking sector is very troubled, especially in these present conditions, not only in the US, but also in Europe. Analysts fear that this is only the beginning of a multiple reactions bound to take place in a chain. Unfortunately, Thomson is one of those who are made responsible and lose their credibility.

related story: http://news.yahoo.com/s/ap/20080602/ap_on_bi_ge/wachovia_ceo;_ylt=Ar8gVd2R4ukFbpIpx16Mmnes0NUE

by Claudia Sonea for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.<br><br><font size=2>These news are original content from young talents around the world and are selected for you by Chris Cantell.</font><br>


Edited by: Maria Zitnanska

Labels: Business, CantellTV, Chris Cantell, Christopher Cantell, digital broadcasting, SigEx Foundry, SigEx Telecom

posted by Blog TechSource @ 1:30 AM