The WSJ just ran a front page article about growing levels of involvement by bank regulators operating in the bank boardroom - is such obtrusive behaviour required oversight following perceived lapses in corporate governance leading up to the credit crisis? Or is there a risk of a powerful shadow director in the boardroom, leading the real work of directors to occur in the hallways before and after board meetings? The article, by Victoria McGrane and Jon Hilsenrath, reports that US regulators are "zeroing in" on bank boardrooms and meet with individual directors and committees on a regular basis. I love the line of one director calling such behaviour as Occupy Board Meetings.
The article also notes the growing trend by bank boards to to add independent board members (up circa 10% since the crisis) and board risk committees being established up some 35% in the US. WSJ subscribers can view the article here:http://www.wsj.com/articles/regulators-intensify-scrutiny-of-bank-boards-1427757247?tesla=y#mod=todays_us_front_section. Regulator involvement in the bank boardroom will become a growing topic of future governance.
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