Firms are unforgiving these days.
Within months of becoming Danske Bank CEO last year, Eivind Kolding was telling investors they could look forward to higher credit ratings to enhance their returns.
The upgrades never came.
Danske then became embroiled in a battle with the financial regulator over an order to add as much as $18bn to risk-weighted assets as it awaits national laws dictating extra reserve requirements for too-big-to-fail banks. Chairman Ole Andersen, who Monday fired Kolding, said Danske needs a ratings upgrade to help lower funding costs.
'It is a very high priority to get our credit rating back to where it should be', Andersen said Monday in an interview from Copenhagen. 'If we somehow can accelerate our strategy implementation to secure a ratings upgrade happens sooner rather than later, then that’s what we should do'.
Andersen said Danske now needs an executive more versed in banking. Kolding, 53, who started as Danske CEO in February last year after heading the container shipping unit of A.P. Moeller Maersk, will be replaced by 49-year-old Thomas F. Borgen.
Borgen has worked at Danske since 1997 and is a member of its executive board with responsibility for corporate and institutional banking.
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