The U.S. Treasury Department elected directors to two banks that participated in the government’s capital purchase program.
The Treasury elected John S. Poelker and Guy Rounsaville Jr. to the board of Clayton, Missouri-based First Banks Inc.; and Gerard M. Thomchick to the board of Narberth, Pennsylvania-based Royal Bancshares of Pennsylvania Inc., the department said in a statement today.
Board members elected by the Treasury have the same fiduciary duties to shareholders as other board members, the department said. The new directors can’t be government employees and don’t represent the U.S. government.
The Treasury used the Troubled Asset Relief Program’s capital purchase program to inject capital into U.S. banks. The program gave the Treasury the right to nominate up to two members to the board of a capital-purchase program bank if the institution misses a sixth dividend or interest payment on preferred stock issued to the Treasury.