Nils Moe, chief executive of Nordlandsbanken, resigned today in the wake of huge losses tied to the bank's dealings with scandal-ridden Finance Credit. The bank's top credit officer also stepped down.
Moe initially had thought both he and the bank would ride out the storm, but that didn't prove possible. The bank was also forced to postpone a planned share issue aimed at boosting its capital.
It was reported that a commission set up in connection with the Finance Credit scandal determined that Nordlandsbanken had made poor credit evaluations before it agreed to lend NOK 450 million (about USD 65 million) to Finance Credit and its principals.
All told, Nordlandsbanken has logged losses approaching NOK 804 million this year. Its top credit officer, Odd Eben, has also resigned along with Moe.
