Traders Await Results from Review of Banking Execs

With today's deadline for government regulators to approve capital-raising efforts at 9 of the largest U.S. banks, traders are also focusing on the deadline of an "equally in-depth review" (as the WSJ puts it) of bank management teams.

As concerns related to the performance of banking execs have come to the fore-front of the financial landscape recently, regulators have repeatedly pressured banks to thoroughly review their Boards. The main case for regulators stems from the concern that bank management lacks expertise in commercial banking, prompting Bank of America (NYSE: BAC) to announce last week that it has appointed 4 outside directors to its Board.

Regulators seem to be bumping into issues, however, as banks have had -- unexpectedly -- better luck at raising capital recently. Also, regulator guidelines for the management review process seem to be somewhat informal and ambiguous, creating worries related to the trustworthiness of the process. In an article entitled "Bank Chiefs Await Report Cards", the WSJ says that "It is unclear if government officials will approve the management review by Monday, or even which federal regulators will get the final say in this process."

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