Pinochet-linked bank chairman resigns

The chairman and CEO of Riggs Bank's parent company has unexpectedly resigned, relinquishing his position and board seat in a move that strips the bank's biggest shareholder of any executive control of the bank.

    Augusto Pinochet is alleged to have hid money at Riggs Bank

    The surprise announcement by Robert Allbritton on Monday comes a few days after he and his family agreed to pay $1 million to a new $9-million fund for victims of former Chilean leader Augusto Pinochet.

    Pinochet is said to have hid money in Riggs with the help of bank officials. The Washington bank is paying the remaining $8 million.
      
    Riggs pleaded guilty in January to a criminal felony charge of failing to report suspicious transactions to the authorities and has agreed to pay $41 million in civil and criminal fines to the US government.
      
    Asked whether pressure from federal bank regulators or PNC had figured into his decision to resign, a spokesman for Allbritton from outside Riggs, Sean Kevelighan, replied: "It was his own decision."
      
    Allbritton, 37, assumed control of the bank from his father, Joe Allbritton, several years ago. The Allbritton family, a powerful local dynasty, collectively owns nearly 43% of the bank's stock. 

    Pittsburgh-based PNC Financial Services Group Inc is buying the parent, Riggs National Corp - stripped of the embassy and international business that got the bank into trouble - for some $643 million in cash and stock.

    SOURCE: Agencies


    YOU MIGHT ALSO LIKE

    How Moscow lost Riyadh in 1938

    How Moscow lost Riyadh in 1938

    Russian-Saudi relations could be very different today, if Stalin hadn't killed the Soviet ambassador to Saudi Arabia.

    Interactive: Coding like a girl

    Interactive: Coding like a girl

    What obstacles do young women in technology have to overcome to achieve their dreams? Play this retro game to find out.

    The War in October: What Happened in 1973?

    The War in October: What Happened in 1973?

    Al Jazeera examines three weeks of war from which both Arabs and Israelis claimed to emerge victorious.