BofA And Citi Given 30 Days To Fire Their CEOs

The results of the stress test are due to be released at 5:00 PM to ensure minimum news cycle impact, and the Feds have released a statement on what to expect. By this point, there’s been so much leaking and throat clearing, it almost seems like an old story at this point.

The pre-announcement reminds people that this is not a solvency test — they really like to hammer that home — and that the point of building up a capital buffer is not to ensure their survival, but to ensure that the banks will lend and support the economy.

(Check out the CEO Graveyard of bosses who’ve been blown out by the financial crisis.)

As has been leaked (of course) the banks will have 30 days to come up with a plan once the results are made public.

One very interesting note, which David Zaring picked up on, is that in this 30 day period “…firms will need to review their existing management and Board in order to assure that the leadership of the firm has sufficient expertise and ability to manage the risks presented by the current economic environment.”

In other words, if you’re on the least-favoured CEO list — we’re looking at you Citigroup CEO Vikram Pandit and Bank of America (BAC) CEO Ken Lewis — it’s time to start talking about succession, planning for the future and resignation.

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