Review underway at Wilmington Trust
Wednesday, June 30th, 2010
As Wilmington Trust approaches it’s 107th anniversary, a regulatory review got underway this week. But this time, the routine review that occurs every 12 to 18 months is happening with a new CEO is at the helm.
And the abrupt change in leadership earlier this month has added to speculation that Wilmington Trust could be sold. That speculation was furthered by a Philadelphia Inquirer article last Sunday.
Wilmington Trust spokesperson Megen Morris says, “The board of directors has reaffirmed our commitment to continuing Wilmington Trust’s 107-year legacy of independence in the future.”
Wilmington Trust’s CEO, Ted Cecala retired earlier this month after 31 years with the company. Wilmington Trust named Don Foley as his successor immediately. Foley joined the bank’s Board of Directors in July 2006 and served as Chariman of the Audit Committee for more than three years.
“Wilmington Trust is committed to remaining independent,” Don Foley, Wilmington Trust CEO said during Cecala’s retirement announcement.
Cecala said he had been discussing retirement plans with the board of directors for some time.
“Given the signs that the economy is starting to improve and considering the strength of our financial conditions all of us agreed that now was the right time to make the transition to new leadership,” former CEO Ted Cecala said during his June 4 retirement announcement.
The soundness review will take several months to complete and then a report will be released. The information will in part determine whether Wilmington Trust is in a financial position to repay TARP funds.
“We have to recognize that we’re a very important supplier to our client base in this area and make sure we’re allocating their capital properly in those situations and we’re following the process through to collection,” Don Foley said.
Delaware Governor Jack Markell says he’s had conversations with Foley about the bank’s future.
“I spoke with the new CEO, he was saying all the right things and I look forward to getting together with him in person, but they’re obviously committed to Delaware,” Governor Jack Markell said.
“We continue to have tens of thousands of people in Delaware employed in our financial services industry. It’s an important industry to us, it’s a good industry for us and they also have seen how hard we work for them,” Markell said. “So we’re going to do everything we can to facilitate the success of many of our financial institutions here in Delaware.”