Old Bank Managers Must Go

Maryam Soleimani, Rooz Online:

Rooz reporter reports that since early this week more than half of Melli Bank managers have either resigned or been ousted from their posts. This push from the top in the banks is similar to what happened to mid-level managers at other government banks.

Based on inside reports, the resignations and replacements in the banks have produced strong reactions from the board of directors of a bank two of who resigned in protest on Monday. There is no news whether their resignations have been accepted or not. When the management changes at Tejarat are complete, observers believe that Ahmadinejad’s cleansing process of the banking system will be complete. Loyal figures will be in control of key decisions of the government banking system. READ MORE

It should be noted that the entire team of the managing directors of all government banks were replaced by Ahmadinejad’s men overnight. The ultra-hardline president and his advisors had expressed their belief that bank executives had played a key role in the crises of the stock market in Iran, thus leading up to their removal.

Shortly before this radical move, Ahmadinejad had labeled government banks as "a financial resource for reform parties", which he has vehemently opposed.

The new wave of management changes at the mid-management level in the government’s banking system can be interpreted to be the continuation of Ahmadinejad’s earlier interference in low-level management posts. Such radical measures by Ahmadinejad's government have sparked criticism among the newly appointed board of directors, even prompting the resignation of some.