The proposal means that he will continue to serve as chairman over the coming months.
Bank Hapoalim (TASE: POLI; LSE:80OA) has submitted a compromise to the Bank of Israel concerning the continuation of Dan Dankner as chairman of Bank Hapoalim. Bank Hapoalim's representative in the matter, Adv. Ram Caspi, submitted to the Banking Supervision Department a non-paper that will include the four-point compromise proposal.
- For a period of one year, the Bank of Israel will not compel Bank Hapoalim to many any personnel changes.
- After an organized discussion, studying the Bank of Israel report, and learning its lessons, Zion Keinan will be appointed CEO of Bank Hapoalim, replacing president and CEO Zvi Ziv.
- Bank Hapoalim will make changes in its board of directors and in its conduct, if necessary. If changes are made, current directors will be replaced by people who can contribute to the bank. Sources inform ''Globes'' that an empty slot on the board will be filled by a well-known high-ranking personality.
- If, after the stipulated period, the Bank of Israel demands additional personnel changes at Bank Hapoalim, these will be made through a dialogue with the bank's controlling shareholder, Shari Arison.
The proposal means that Dan Dankner will continue to serve in his post over the coming months.
The Banking Supervision Department has not yet officially commented to the proposal. However, a source close to the process described the Bank of Israel's position as "hard line". Banking sources do not think that the proposed compromise is good enough, and that it is not a basis for negotiations.
Sources close to Bank Hapoalim said this morning that the dispute with the Bank of Israel should not end up in court. A source said, "Bank Hapoalim is a large and important bank. Some kind of settlement must be reached."
The dispute between the Bank of Israel and Bank Hapoalim erupted when Governor of the Bank of Israel Prof. Stanley Fischer demanded that Arison replace Dankner because Fischer was dissatisfied with Dankner's conduct. The Bank of Israel also threatened to take legal action available to it to enforce the removal of Dankner from his post.
Published by Globes [online], Israel business news - www.globes-online.com - on April 27, 2009
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