Magazine article American Banker

Security Pacific Ousts Corteway from Post of Credit Chief Officer

Magazine article American Banker

Security Pacific Ousts Corteway from Post of Credit Chief Officer

Article excerpt

Security Pacific Ousts Corteway From Post of Chief Credit Officer

LOS ANGELES - In an effort to combat its mounting bad loans, Security Pacific Corp. has quietly reshuffled the top officers of its credit management team, bringing back vice chairman George H. Benter as chief credit officer.

The changes were made last month but not publicly announced, a Security spokeswoman confirmed Thursday. Mr. Benter, 49, was chief credit officer in the mid-1980s and succeeds vice chairman Robert C. Corteway, who held the position for about four years. Mr. Corteway, 47, has not been reassigned, the spokeswoman said.

Security, like many other banks, has experienced a surge in problem loans as the economy slumped. Earnings have taken a beating as the bank set aside big provisions for loan losses.

Getting a Hold on Credit Risk

The Security spokeswoman said Mr. Benter's reappointment was part of a move to "strengthen and reinforce" the company's credit and risk management activities.

A source close to the bank said that Mr. Corteway was made "the fall guy" for Security's credit problems, although many bad loans were booked through its merchant bank, which was beyond his control. The merchant bank, since disbanded, oversaw Security's overseas and securities businesses. As well, there had been growing tension between Mr. Corteway and Security Pacific chairman and chief executive Robert Smith, sources said.

Before becoming chief credit officer, Mr. Corteway was executive vice president and administrator of the special assets or workout group. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.