ShoreBank gets new management duo
By Steve Daniels May 26, 2010
(Crain’s) — David Vitale, the Chicago banking veteran slated to become executive chairman of ShoreBank Corp., recruited two colleagues from his days at First Chicago Corp. to beef up management of the South Side community lender following its controversial bailout led by Wall Street’s biggest players.
William Farrow, 55, with whom Mr. Vitale has worked both at First Chicago and the Chicago Board of Trade, Wednesday was named president and chief operating officer. He will report to George Surgeon, who continues as CEO of ShoreBank and president and CEO of the holding company.
Eileen Kennedy, 52, was named chief financial officer of both the Chicago bank and the holding company.
Mr. Farrow most recently was executive vice-president at CBOT and played an important role in the exchange’s initial public offering.
Ms. Kennedy most recently was CFO for Gartmore Asset Management, the London-based investment unit of Ohio-based Nationwide Mutual Insurance Co. Before that, she was CFO for life insurance arm Nationwide Financial Services Inc. She was treasurer at First Chicago when Mr. Vitale served as vice- chairman.
Some old hands at ShoreBank will have new roles. Ellen Seidman, 62, a former federal banking regulator and a ShoreBank officer since 2005, was named executive vice-president of mission and strategy. Kimberly Lynch, who joined the bank last year, will continue as general counsel. Leana Flowers, 60, will continue as head of human resources, and Laurie Spengler, 47, will continue as president and CEO of ShoreBank International Ltd., the bank’s unit specializing in microfinance in the developing world.
“With these professionals, ShoreBank will have in place a strong management team which knows ShoreBank well and is committed to forwarding ShoreBank’s mission to help the lower- and moderate-income communities we serve become stronger and healthier,” Mr. Vitale said in a news release.
The $2.3-billion-asset bank barely averted failure last week when it secured about $140 million in commitments for new equity from leading financial services firms including Goldman Sachs Group Inc., General Electric Co., Citigroup Inc., J. P. Morgan Chase & Co. and Bank of America Corp.
(((It now awaits word on whether it will receive a $75-million infusion from the Treasury Department’s Troubled Asset Relief Program. That’s expected within two months.))))
Top Republicans on the U.S. House Financial Services Committee have called for probes into the White House’s ties to ShoreBank. The bank’s outgoing founders, Ronald Grzywinski and Mary Houghton, have personal relationships with the Obamas, as well as ties to Bill and Hillary Clinton going back to the 1980s when an Arkansas bank modeled on ShoreBank was established.
The White House has denied any involvement with the ShoreBank rescue.
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