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ANOTHER GREEK TRAGEDY - BANK CEO LEAVES FOLLOWING PRESSURE
Bank turnarounds are obviously messy things, and bank turnarounds in places like Greece following its Eur85billion bailout must be another matter altogether. Piraeus Bank's turnaround CEO has just reportedly resigned following pressure from state authorities. The bank is 25% owned by the Hellenic Financial Stability Fund with lesser stakes held by offshore investors such as Paulson & Co. It was reported that Paulson strongly backed the CEO following his Eur4 billion in capital raising and acquisitions of smaller lenders but the Greek authorities did not always see eye to eye with management. The bank is believed to have a significant NPL book, possibly amounting to 50% according to the FT and underscores the difficulties faced by foreign investors in bank turnarounds in markets like Greece. More can be found on this story at http://www.bloomberg.com/news/articles/2016-01-14/paulson-fund-backs-embattled-piraeus-bank-ceo-as-shares-plunge
Bank turnarounds are obviously messy things, and bank turnarounds in places like Greece following its Eur85billion bailout must be another matter altogether. Piraeus Bank's turnaround CEO has just reportedly resigned following pressure from state authorities. The bank is 25% owned by the Hellenic Financial Stability Fund with lesser stakes held by offshore investors such as Paulson & Co. It was reported that Paulson strongly backed the CEO following his Eur4 billion in capital raising and acquisitions of smaller lenders but the Greek authorities did not always see eye to eye with management. The bank is believed to have a significant NPL book, possibly amounting to 50% according to the FT and underscores the difficulties faced by foreign investors in bank turnarounds in markets like Greece. More can be found on this story at http://www.bloomberg.com/news/articles/2016-01-14/paulson-fund-backs-embattled-piraeus-bank-ceo-as-shares-plunge
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