Wall Street’s old guard swoops in to fix a fresh banking mess


Big problem: Customers are seen in front of SVB in Santa Clara, California. Michael Roberts, a finance professor at the University of Pennsylvania’s Wharton School, says the future of the bank is unclear, even with the help of seasoned executives. — Reuters

WASHINGTON: Franklin Raines has a name for battle-tested Wall Street figures who get brought in to clean up the nastiest problems at the biggest institutions: “mega finance veterans”.

He would know. Raines ran Fannie Mae for years, leaving under pressure before the home-loan giant collapsed in 2008 and was taken over by the Federal Housing Finance Agency. When US officials tapped Herb Allison as chief executive officer (CEO), Raines dropped him a line.

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SVB , collapse , Raines , troubshooter , FDIC , revamp

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