Bank One: Out Of Excuses?

Pity Verne G. Istock. On Jan. 11, after just 20 days as acting chief executive of Bank One Corp., Istock was trotted out in front of Wall Street analysts who have seen shares in the nation's most troubled major bank halved since mid-July. And there was little chance this crowd was going to give the new guy a break: Bank One announced a huge $725 million fourth-quarter charge and warned that 2000 results will come in far under already trimmed expectations. Istock's personal stock fell further on another bit of news: Bank One's board has asked Russell Reynolds Associates Inc. to look around for a new, permanent CEO.

After three profits warnings and the ousting of former CEO John B. McCoy Jr. on Dec. 21, Istock told the crowd, "It's fair to say we lost credibility." The bank's performance at the Jan. 11 meeting did little to restore any--though Istock and his managers promised, by 2001, to return First USA to industry-level growth and profitability.