Two Top Officers of Bank One Houston Resign
HOUSTON (AP) _ The two highest-ranking officers of Bank One Houston have resigned, and the president of Bank One Cleveland has been named chairman, bank officials said.
A statement from the bank Tuesday announced that Chairman C. Richard Vermillion and President Ben McAndrew had resigned to ″pursue other interests.″
Both men were holdovers from MBank, which failed in 1989 and was bought by Bank One later that year. The collapse of MCorp, parent of MBank, cost taxpayers an estimated $2.7 billion.
David L. Stith, president of Bank One Cleveland, Ohio, took over duties as chairman Tuesday, bank officials said. A replacement for McAndrew was not immediately named.
″We felt a need for new leadership with more emphasis of a Bank One background,″ Harvey Mitchell, chairman of Bank One Texas, said. ″This was the right time for a change.″
The moves occurred before Banc One Corp. completes its merger with Team Bancshares, the sixth largest bank in Texas, later this year. McAndrew declined to comment and Vermillion didn’t immediately return a telephone message seeking comment.
Vermillion and McAndrew were among bank executives criticized by U.S. Rep. Frank Annunzio, D-Ill., for failing to repay hundreds of thousands of dollars in loans from MCorp after that institution failed.
The loans were defended by the executives who claimed they were legitimate severance payments.
The program allowed 54 top executives to borrow more than $8.5 million on the condition that the loans would be forgiven if there was a change in ownership of their employer.
Vermillion received $300,000 and McAndrew got $225,00, according to a report by Annunzio.