The confrontation between the Bank of Israel and Bank Hapoalim (TASE: POLI; LSE:80OA) is heating up. Governor of the Bank of Israel Prof. Stanley Fischer and Supervisor of Banks Rony Hizkiyahu are losing their patience and expect Bank Hapoalim controlling shareholder Shari Arison to submit a short timetable "within days" for the replacement of bank chairman Dan Dankner. Fischer may again meet Arison after his return from the US.
The Bank of Israel wants Bank Hapoalim president and CEO Zvi Ziv to stay in his post at least through the end of 2009. After Dankner is replaced, and Arison appoints a new chairman, the new chairman will initiate procedures to find a new CEO who will take up his post toward the end of the year. The Bank of Israel believes that the new CEO should be chosen via an organized procedure that includes reviewing a number of candidates.
The Israel Securities Authority supports the Bank of Israel. Securities Authority chairman Zohar Goshen met Hizkiyahu today, and discussed Bank Hapoalim among other topics. Officially, the Securities Authority cannot deal with the matter. Nonetheless, sources close to the Securities Authority say that Goshen is personally quite displeased by the developments at Bank Hapoalim, apparently because of the concentration of power at the bank in Arison's hands, and because its management seems to acting merely as a rubber stamp for Arison and Dankner.
Bank Hapoalim's board of directors met today for another meeting about the confrontation between Arison and Fischer. The board is expected to support Dankner and ask Hizkiyahu to attend the next board meeting to explain his reasons for demanding the ouster of Dankner.
Published by Globes [online], Israel business news - www.globes-online.com - on April 26, 2009
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