Management of Crocker Parent Hit by Holders
LONDON — The management of Midland Bank came under the gun Friday at the annual shareholders meeting over the organization’s troubled California subsidiary, Crocker National Bank.
With Crocker--of which Midland owns 57% and plans to buy the rest--losing $20 million in 1983 and more than $300 million in 1984, shareholders demanded to know who had been responsible for what one described as “the disastrous decision†to buy into the bank.
Nearly 300 shareholders crammed into Midland’s headquarters in the financial district of London for the annual meeting.
Chairman Sir Donald Barron said he could not guarantee that there would not be further bad debt provisions at Crocker, but he added that general provisions made last year would help to deal with any further problems in its loan book.
The decision to acquire the original Crocker stake had been taken after the proper procedures and after the bank had taken professional advice and studied the reports of the banking regulatory authorities, Barron said.
But one shareholder asserted that “it looks to me as if Crocker will be a continuing loss maker for many years.†The shareholder said investors needed to know Crocker’s prospects because they did not want to throw good money after bad, “but that is what you may be asking.â€
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