Italy’s central bank warns Unicredit
(23 September 2010 – Europe) Italy’s central bank has warned Unicredit to hasten it search for a new chief executive following the ejection of the previous CEO.
The Australian Financial Press (AFP) managed to obtain a letter from the Bank of Italy urging the lender to find a new CEO saying the banking giant had a ‘systemic importance.’
The central bank also warned the lender that the move to temporally place current chairman Dieter Rampl in the role of CEO breached current banking regulations.
Alessandra Profumo, Unicredit’s former chief executive, resigned earlier in the week after a dramatic shareholder rebellion against his leadership.
Mr Profumo oversaw the major international expansion by the bank to become one of Europe’s biggest lenders.
The shock resignation has rocked the country’s financial elite and weighed heavily on the nation’s largest bank’s share price at a time when the Italian economy is under scrutiny because of its high debt levels.
Giulio Tremonti, economy minister, was reported against the dismissal because he was afraid of a power vacuum.
Mr Rampl meanwhile stressed that Profumo's resignation was necessary and said that the bank would maintain its strong European focus.
A change in leadership was necessary. The strategies will not change and in the next few weeks, we will have a replacement suitable to lead such a great bank as Unicredit, Mr Rampl told an Italian newspaper.
The central bank also warned the lender that the move to temporally place current chairman Dieter Rampl in the role of CEO breached current banking regulations.
Alessandra Profumo, Unicredit’s former chief executive, resigned earlier in the week after a dramatic shareholder rebellion against his leadership.
Mr Profumo oversaw the major international expansion by the bank to become one of Europe’s biggest lenders.
The shock resignation has rocked the country’s financial elite and weighed heavily on the nation’s largest bank’s share price at a time when the Italian economy is under scrutiny because of its high debt levels.
Giulio Tremonti, economy minister, was reported against the dismissal because he was afraid of a power vacuum.
Mr Rampl meanwhile stressed that Profumo's resignation was necessary and said that the bank would maintain its strong European focus.
A change in leadership was necessary. The strategies will not change and in the next few weeks, we will have a replacement suitable to lead such a great bank as Unicredit, Mr Rampl told an Italian newspaper.
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