Ousting bailed-out US bank CEOs an option-Geithner

WASHINGTON, April 1 (Reuters) - U.S. Treasury Secretary
Timothy Geithner said on Wednesday he would consider forcing
out chief executives of banks that receive government bailouts
if they were not managing their businesses properly.
In an interview with CBS, Geithner said economic recovery
depends on a financial system that effectively provides credit,
and the government would hold companies receiving public aid
accountable.
When asked whether he left open the option to pressure a
bank CEO to resign, Geithner responded, "Of course. Of
course."
The comment came just days after the chief executive of
General Motors Corp was ousted at the request of
President Barack Obama's auto task force.
The White House has been trying to strike the right balance
between salvaging firms that are vital to the economy and
acknowledging taxpayer resentment over a series of increasingly
costly bailouts.
The fact that many companies continued to pay large bonuses
and sponsor lavish corporate events after accepting public
money has infuriated voters and politicians alike, and Geithner
in particular has been criticized for not imposing strict
limits on how companies use government money.
In separate interviews with ABC and NBC, Geithner noted
that the government has pushed out executives of bailed out
companies before.
"Where the government has ... had to take exceptional
action, the government has come in and changed management and
boards so that these firms can emerge stronger," he told NBC
news. "Where we have to do important things to provide
assistance, we're going to make sure we do so on terms that
protect the taxpayer and have these firms emerge stronger."
(Reporting by Emily Kaiser; Editing by Leslie Adler)
((emily.kaiser@thomsonreuters.com; +1 202 310 5444; Reuters
Messaging: emily.kaiser.reuters.com@reuters.net))

Keywords: FINANCIAL/BANKS GEITHNER

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