GraceKennedy Limited, majority owner of First Global Bank, on Tuesday announced the resignation of Wayne Wray, the bank's president, who appears to be the latest and possibly ultimate casualty of the rogue trading debacle that recently racked up losses of US$ 19 million (J$1.68 billion) at the bank.

The discovery of the unauthorised trades was made in an audit less than a month ago and four senior staffers have since been fired over the incident.

Since the issue surfaced, there was speculation that Wray would have been held ultimately responsible.

"Mr Wayne Wray, president of First Global Bank, has tendered his resignation from the bank and will demit office on September 30, 2009," a statement from GraceKennedy said.

Two weeks ago GraceKennedy, which has repeatedly stated its ability and intention to support the bank in the aftermath of the problem, pumped in $900 million to shore up the entity's asset base amid reports that Bank of Jamaica has demanded strong corrective action from the bank's principals.

Neither GraceKennedy nor First Global has said precisely what oversight deficiencies led to the incident or what corrective measures have been put in place apart from the firing of the four senior employees.

Additional measures

"The bank has taken action to ensure that risks surrounding possible similar losses have been eliminated and has implemented additional measures necessary to ensure that there is no recurrence," GraceKennedy boss and bank Chairman Douglas Orane said in an earlier statement.

As Orane disclosed Wray's resignation yesterday, he also announced that chief executive officer of GK Investments, Courtney Campbell, had been named to acting president as an interim measure until a replacement is found.

Campbell is also head of First Global Holdings, under which the bank and sister investment company First Global Financial Services fall.

New leadership

"As of October 1, 2009, Mr Courtney Campbell, chief executive officer of GK Investments, will assume leadership of the bank until a successor is named," said Orane.

"Mr Campbell is an experienced banking executive with over 20 years' experience in retail, corporate and investment banking."

Campbell, a banking executive recruited from National Commercial Bank in May 2008, will retain his substantive post of CEO, GK Investments, in which he oversees all of the group's financial and insurance businesses as well as the loss-making retail company Hardware and Lumber Limited, operator of the Rapid True Value chain of stores.

First Global Bank is the fifth largest of seven banks with assets of $33 billion at June 2009.

business@gleanerjm.com