Thursday, March 26, 2009

Suit alleges TARP bank retaliated against former executive opposing Chairman's compensation plan.


A former executive of Citizens Republic Bancorp Inc., which got $300 million in public money through the Troubled Asset Relief Program, says he was fired after objecting to a multimillion-dollar payout sought by the company's chairman and chief executive.

John D. Schwab, who was executive vice president and chief credit officer, said in a wrongul-termination suit that he was forced out after urging a member of the company's board of directors to block Chairman William R. Hartman's demands.

Schwab filed suit in a Michigan state court, alleging that Hartman retaliated against him for opposing the compensation plan. Schwab said in a press release announcing the suit that he had argued that any large bonus payment to
Hartman would violate restrictions imposed on banks that take TARP money from the Treasury Department.

Citizens Republic declined to comment on the suit, citing a policy of not discussing pending litigation.
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