It may not be her biggest concern right now, but the recently departed Sallie Krawcheck will have to land a new gig at a large brokerage firm or resign her newly won seat on Finra's board.
Early last month, Ms. Krawcheck was elected to one of the three
Financial Industry Regulatory Authority Inc. board seats reserved for representatives of large member firms. But Tuesday, the former head of
Citigroup Inc.'s wealth management unit was ousted from her job as president of Global Wealth & Investment Management at
Bank of America Corp.
As a result, Ms. Krawcheck's Finra status in jeopardy.
“If Ms. Krawcheck affiliates with another large firm within a short period of time, she can remain on the board,” Finra spokeswoman Nancy Condon wrote in an e-mail. “Otherwise, a special election will have to be held.”
Ms. Condon couldn't say how long Finra might wait, but added that the issue will be a topic of discussion at Finra's next board meeting this month.
This isn't the first time an industry board member was fired, nor would it be the first such special election.
In 1998, Jamie Dimon, then president of
Citigroup and an industry board member of Finra's predecessor, NASD's regulatory unit, was ousted from
Citigroup at the same time that he ran for re-election to NASD's board.
Mr. Dimon, now chief executive of JPMorgan Chase & Co., lost out in that race to several other candidates in NASD's first contested board election.
A decade later, Finra had to hold a special election to replace a seat vacated by Richard Goble, owner of North American Clearing Inc., who resigned from the board after the Securities and Exchange Commission filed a complaint against him and his firm.
The 22-person Finra board structure was reorganized in 2007. It now has three small-firm governors, three from large firms and one from a midsize firm.
Email Dan Jamieson at [email protected]
