‘Tis the day for backtracks and denials, it seems.
Earlier, it was reported that FDIC chief Sheila Bair said that some bank chiefs would have to be fired sometime soon as part of reorgniazation plans.
But, now the FDIC denies the report. Specifically, it doesn’t like the way Bloomberg News reported the Bloomberg TV interview.
Reuters: The FDIC said the Bloomberg News report, which cited a television interview to be broadcast this weekend, was “misleading.”
“Chairman Bair said that management changes could happen based on the capital plans that an institution must submit to the government,” the FDIC said in a statement. “She did not refer to CEOs specifically and the comment was in the context of capital plans submitted by the institutions. Chairman Bair also did not suggest the federal government will remove the bank CEOs.” Read the whole thing >
We haven’t seen the video yet, but we’ll render our verdict when we get the exact transcript.
The other big reversal today is the ongoing myster of Mark Patterson and the missing Telegraph article, in which it was reported that the investor — who has benefitted from the TARP — called the program a sham.