CFO changes in US banks cause investor tension
Conveyor belt of CFOs at US banks causes investor anxiety at a time when they crave stability
WALL STREET BANKS have been hemorrhaging chief financial officers causing tension in the investor community.
Last Friday’s shock decision by Bank of America to replace Chuck Noski after just a year, means most large US banks, except Goldman Sachs, have changed CFO in the last two years, the Financial Times reports.
An analysts told the publication the unusual turnover could give investors the jitters, as CFO departures may indicate financial concerns at the business.
“It is always a red flag when the CFO of a bank leaves,” said Mike Mayo, an analyst at CLSA.
His view was echoed by Charles Elson, director of the centre for corporate governance at the University of Delaware, who claimed investors need to understand the reasons for the departure to “allay their fears”.
A statement from Bank of America said Noski left for personal reasons.
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