Directors Seek Successor Who Can Restore Confidence

By LeGesse, David | American Banker, August 29, 1984 | Go to article overview

Directors Seek Successor Who Can Restore Confidence


LeGesse, David, American Banker


Directors Seek Successor Who Can Restore Confidence

The resignation of Charles W. Knapp as chairman of the Financial Corporation of America does little to solve the company's long-term problems, leading thrift executives and analysts say.

Still needed, some say, is a government guarantee of all deposits at the American Savings & Loan Association, Financial's primary unit and the nation's largest thrift, to stop the drain on the thrift's deposits.

Regulators at least need to express confidence in the strength of American Savings to reassure depositors, said Ernest Leff, an attorney will Leff and Mason, a Beverly Hills law firm.

But a West Coast thrift executive commented: "I don't see how the government could've provided assistance without first getting Knapp to resign.'

Mr. Knapp's resignation itself--and the naming of a successor--could help stem the outflow of deposits that has hit American Savings, said Jerry Baron, an analyst with First Boston Corp.

"Charlie's resignation was probably aimed 90% toward restoring confidence,' Mr. Baron said. "It may impress upon depositors that an aggressive manager is no longer at the helm, as well as removing a point of friction with regulators. And it ought to quiet all those unnamed critics' quoted in recent press reports.

The big question Tuesday was whether Financial's board of directors would select a replacement from current management, or regulators would force the board to choose a successor from outside.

Regulators had applied pressure for Mr. Knapp's resignation, though the thrift executive said the decision was voluntary.

"Charlie's not the type to be forced out, he must have felt even greater pressure from institutional investors who were withdrawing their funds,' said a former thrift regulator.

Whether insider or outsider, Mr. Knapp's successor must have a reputation that will further strengthen depositor confidence, said Anthony Frank, chairman of First Nationwide Savings & Loan Association, San Francisco.

"I guess [Mr. Knapp] and I agree the issue is depositors' confidence,' he said.

Once in place, the new chairman should personally call and talk to large depositors, Mr. Frank said, while also developing a strategy to rebuild their confidence in American Savings.

Mr. Frank denied press reports that he was approached as a possible replacement for Mr. Knapp, adding that he is happy in his present job at First Nationwide.

Speculation about a replacement Tuesday favored William Popejoy, who was president of the former Financial Federation Inc., Los Angeles, when it merged with Great Western Savings, Beverly Hills. Mr. Popejoy also is a former president of the Federal Home Loan Mortgage Corp. and was president of American Savings before its merger with Financial Corporation.

"He has a lot of significant experience with the thrift industry,' Mr. Barron said.

Other names mentioned as possible successors include Jay Janis of Los Angeles, a former chairman of the Federal Home Loan Bank Board and currently a director of the Federal Home Loan Bank Board of San Francisco; Maurice Mann of A.G. Becker in San Francisco; Richard Pratt, president of Merrill Lynch Mortgage Capital Inc.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Directors Seek Successor Who Can Restore Confidence
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.