May 15 (Bloomberg) -- Federal Deposit Insurance Corp. Chairman Sheila Bair predicted some bank chief executives will be replaced in the next several months as lenders subjected to financial stress tests review their management ranks.

“Management needs to be evaluated,” Bair said today on Bloomberg Television’s “Political Capital with Al Hunt,” to be broadcast this weekend. “Have they been doing a good job? Are there people who can do a better job, those kinds of questions.”

CEOs at American International Group Inc., Fannie Mae and Freddie Mac were ousted by the Bush administration after the U.S. took control in September. General Motors Corp. CEO Rick Wagoner was forced out in March after the Obama administration rejected GM’s recovery plan. The CEOs of Citigroup Inc. and Bank of America Corp., which combined received $90 billion in U.S. aid, remain in their jobs.

Asked by Hunt, “Why are some of these other banks’ CEOs still there?,” Bair replied, “Right, well, obviously I don’t comment on open and operating institutions. I think the review needs to go with both the management and the board as well, absolutely.”

She was then asked, “Do you think some will be replaced in the next couple of months?” Bair replied, “Yeah, I think there will be an evaluation process. We’re requesting it as part of the capital plan and yes.”

AIG, Fannie Mae

The FDIC released a statement after the interview, characterizing Bair’s comments. Bair, 55, said management changes “could happen” based on capital-raising plans being submitted to the government, the agency said. “She did not refer to CEOs specifically,” according to the statement. “Bair also did not suggest the federal government will remove the bank CEOs.”

The 24-member KBW Bank Index fell as much as 2 percent after Bair’s comments. Charlotte, North Carolina-based Bank of America Corp. dropped as much as 5.7 percent, while San Francisco’s Wells Fargo & Co. declined as much as 3.9 percent.

The FDIC and other regulators last week released stress test results on 19 lenders including Citigroup Inc., Wells Fargo & Co. and Bank of America Corp., and ordered 10 to raise $74.6 billion in capital to withstand a “deeper and more protracted” slump than forecast by economists.

‘Evaluation Process’

Regulators should oversee the “adequacy” of the boards of directors at banks receiving U.S. aid, said Bair, who was appointed in 2006 by the Bush administration.

“We do need bank management and bank boards that know how to work through troubled environments, who know how to do good, bread-and-butter, basic bank-risk management,” she said. “Those are the things we’re looking at.”

Bair said the evaluation may include a review of a bank’s board, which may result in replacing some of the directors.

“In some instances,” Bair said. “It needs to be on an individualized basis.”

Bank of America CEO Kenneth Lewis “heard the shareholders’ message that they wanted a different course” after the April 29 vote stripping him of his title as chairman, bank spokesman Robert Stickler said in a telephone interview today. Walter Massey, a retired college president who was elected chairman, on May 7 announced a committee to suggest changes to the board.

To contact the reporter on this story: Alison Vekshin in Washington at avekshin@bloomberg.net.

Last Updated: May 15, 2009 15:50 EDT