A Second Chance For First City
Ending months of speculation, Robert Abboud on Mar. 27 stepped down as chairman of Texas' First City Bancorp. First City has been hammered by bad loans and big losses under Abboud, who led a federally assisted buyout of the bank in 1988. Its bad loans are still mounting, and it expects to lose $50 million to $75 million in the first quarter.
The new chairman, Ivan Wilson, is a 35-year First City veteran. He's well-connected in the state banking hierarchy, with a better chance of raising new capital. But he'll have his hands full. The bank needs $200 million to meet federal capital requirements.