Four MNC directors reportedly resign

February 05, 1991|By Peter H. Frank

Four directors of Maryland's largest bank holding company, MNC Financial Inc., have stepped down in recent days, soon after the company skirted a severe financial crunch, according to company sources.

The resignations brought the total number of MNC board members to resign over the past five months to six, leaving 22 directors on the board.

According to two directors and other high-ranking MNC sources, who declined to be identified because of the sensitivity of the issue, the four board members who recently resigned are:

* George L. Bunting Jr., chairman of Noxell Corp., a Baltimore-based maker of cosmetics that is a subsidiary of Procter & Gamble Co. Mr. Bunting joined the board of Maryland National Bank in 1973.

* A. James Clark, chairman of Clark Enterprises Inc., a construction and real estate company in Washington, who had been a director of American Security Bank, an MNC subsidiary, since 1970.

* Earl L. Linehan, president of Woodbrook Capital Inc., a Baltimore investment company. Mr. Linehan became a director of Equitable Bancorporation in 1986, and Equitable was merged into MNC last year.

* Harvey M. "Bud" Meyerhoff, a Baltimore philanthropist and chairman of a Baltimore-based investment company, Magna Holdings Inc.

Mr. Meyerhoff, who joined the board of Maryland National Bank in 1970, said yesterday through a spokeswoman, "I've become involved in a number of activities which take me out of Baltimore very frequently, and therefore I've resigned due to my personal time limitations."

The other three former directors either could not be reached for comment yesterday or did not return telephone calls seeking interviews.

More specific reasons for the resignations could not be determined yesterday, but they all came soon after Baltimore-based MNC sold its credit-card unit for $1.1 billion, the sources said.

The sale of the credit-card unit, MBNA Corp., a pivotal move that provided the troubled banking company with much-needed cash, was completed Jan. 22.

The resignations, which came in private notices to the board and have not been publicly announced, were not part of any orchestrated move but came as each director independently decided to concentrate his time elsewhere, the sources said.

MNC, which owns Maryland National Bank and American Security Bank in Washington, reported Friday that it lost $440 million last year. Nearly $2 billion in bad real estate loans sapped earnings.

Daniel G. Finney, an MNC spokesman, declined to comment on the resignations, saying only: "There have been a number of recent resignations among the MNC Financial board of directors, and we expect to finalize the slate of directors for 1991 within the next several weeks as the proxy concerning the re-election of MNC's board is being developed."

Any new directors would be nominated and voted on at MNC's annual shareholders meeting, which is expected to be held in late April or early May, Mr. Finney said.

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