`Shit'-storm ends with resignation of bank chairman

Steve Shieh (謝壽夫), chairman of the state-controlled First Financial Holding Co, yesterday tendered his resignation to the Ministry of Finance amid criticism from lawmakers of his inappropriate words in the legislature last Thursday.

His intention to leave the post was announced at a press conference last night by Chao Yuan-chi (趙元旗), president of First Financial, and Liao Long-yi (廖龍一), president of the holding company's banking arm First Bank.

Eleven of the company's highest-ranking officials attended the press conference.

"Shieh told us in the afternoon he had tendered his resignation letter to the ministry, but he did not detail the reasons behind his decision or the content of the letter," Chao said.

"He urged us to carry on with the company's restructuring and reorganization work, saying there should not be any disruption [to reforms] because of his resignation," Chao said.

IMPACT ASSESSMENT

Shieh was appointed by the Ministry of Finance to sit on First Financial's board two years ago and his resignation needs the ministry's approval.

Finance Minister Lin Chuan (林全) say he respects Shieh's decision and will formally submit the resignation letter to the Executive Yuan tomorrow.

At the same time, Lin will present an impact assessment of Shieh's departure.

Shieh's decision to resign makes him the second First Financial chairman to step down in two years.

His predecessor, Jerome Chen (陳建隆), left in August 2003 due to alleged illegal involvement in the financial institution's US$515 million sale of 1 billion shares abroad.

The incident leading to his resignation occurred last Thursday, when Shieh, 66, uttered the English-language expletive "shit" to show his frustration of questions posed by Chinese Nationalist Party (KMT) Legislator Alex Fei (費鴻泰).

Although the senior banker immediately offered his apology, Fei and other lawmakers across the political spectrum remained dissatisfied, urging the finance ministry to replace Shieh as soon as possible.

Voicing support for their leader at the press briefing, Liao said Shieh's daring and resolve in to pushing for company reforms deserve praise. Describing the incident as "unfortunate," Liao said. "I cannot accept the fact, as it is improper to change the head when company restructuring work is only half completed."

CONTRAST

Liao's all-out support, however, stands in stark contrast to escalating tensions between Shieh and the bank's employee union, which complained that company reforms have driven down bank performance and resulted in a mountain of consumer complaints.

Shieh, who spent the past 10 years at Taishin Commercial Bank before becoming chairman of First Financial in late 2003, has working experience at First Republic Bank, Ford Financial Co and Texas Instruments Inc.