Lazy journalism. To be fair, it did at least hint at the responsibility of the CEO and the board, as well as the board’s lack of professional expertise. Many on this forum are still willing to believe that they bear no responsibility for anything, that the slate has been wiped clean and the past can be forgotten.
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It would be a huge upgrade if the board could attract individuals with experience in the processes of larger banks or, for instance, an international perspective. In my eyes at least, the credibility would increase instantly if someone with decades of experience from various banks and potentially from abroad, etc., joined the board.
However, I see it as a plus that the board also includes people with a strong entrepreneurial background, rather than just “stuffy” finance types. That stuffiness can, however, bring a beneficial kind of dullness and rigidity to the processes, making it impossible for a single person to virtually force others to act in a certain way. On the other hand, I might be placing too much weight on board-level expertise here. 
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Crisis sells, but on the other hand, it shows that unfortunately even journalists haven’t been able to dig up anything new, despite the time that has passed since the event.
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Things are moving forward
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Indeed.
Now, however, Kauppalehti reports that the chairman of the board is stepping down. That too is a sign of something. According to the forum’s know-it-alls, it’s surely due to crimes that have continued for at least years and systematic lending to buddies, etc… well, let’s take those for what they’re worth.
Kauppalehti’s “news” was, by the way, also total rubbish; someone had already commented that its quotes were completely off the mark.
”At the same time, the board decided to establish an audit committee, the composition of which will be specified later.”
So, internal auditing/control is being increased. 
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I think the change of the Chairman of the Board is a good thing. Hopefully, Professor Jaakko Ossa succeeds in his role.
CEO Pasi Sydänlammi should still be replaced by a new CEO. I have a hunch that the new Chairman of the Board will bring in a new CEO. Formally, of course, the Board makes the decision. Then a so-called new era could begin.
Trust will not be restored if the CEO does not change.
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This is it. So many errors and outright blunders have been made that the CEO shouldn’t be able to keep his position. Or rather, he wouldn’t be able to, if the Savings Bank Foundations (Säästöpankkisäätiöt), which hold 70+% of the ownership, weren’t asleep at the wheel. It may be that the executive management dictates everything while the main owners just watch from the sidelines.
Appointing that audit committee is a very necessary move. For a small bank, it hasn’t been that significant, but with such rapid growth, the bank has clearly forgotten caution and precision.
Perhaps OmaSP will survive this with reasonable damage and get things back on track through personnel changes. For now, I personally am staying far away.
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I personally would keep the current CEO. One rogue executive doesn’t ruin a 14-year growth streak.
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I don’t think the CEO will be replaced, and that’s a good thing. The departure of the Chairman of the Board was planned together with the CEO and the Board. It was known that someone had to leave to restore credibility, and that person was Jarmo Salmi.
The new Chairman of the Board, Jaakko Ossa, mentions after the appointment: “I have a strong view that together with the current capable management, we will be able to resolve the matters that have been in the public eye.”
Jaakko Ossa would not have referred to the current capable management if the CEO were being replaced. All the plans on how to build trust have been agreed upon in advance.
Only if the NBI (KRP) investigation reveals something that forces the CEO to resign.
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I have not owned shares and I am not buying, at least not until there is more clarity regarding the current situation. The fact is that performance up to this point has been exceptionally good. And at the same time, it is true that risk-taking has been rewarded due to market cycles.
If that were the only issue, I would already be a shareholder following the drop in the share price. But that is certainly not the case. There is quite enough smoke visible based on the Kauppalehti article alone. If executives are getting sacked in a bank this small, then something is almost certainly wrong. Specifically, in the operations and management, which is a much larger issue than a single individual. Buy the stock if you dare. Sincere congratulations if everything turns for the better!
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That is certainly the thinking. And just a moment ago, it was still thought that no one from the board would need to leave. The behavior is like the scandal in Finnish cross-country skiing at the turn of the millennium. I don’t believe for a moment that the situation is over yet. Let alone that the current CEO will continue in his role for long, despite the delaying tactics.
P.S. @Maija_Vehvilainen if and when Alma’s financial media continues to cover the topic, interview the investors who bought apartments in the provinces “below market price” and have explained how collateral values were inflated using broker appraisals immediately at the time of purchase, thus financing the acquisitions without any down payment. That leads to an interesting discussion on whether the collateral values were realistic at any point in many cases.
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I greatly appreciate your posts @JuhaR and they are almost always relevant, containing good insights as well as facts.
I agree that not everything is right at OmaSp and I wouldn’t be surprised at all if more skeletons are found in the closet.
While I like that you present things elegantly and know how to articulate even negative points excellently, I don’t like that you are handing out tips to journalists on what else they should dig up to get good stories. In my opinion, this is verging on excessive negativity and no longer adds anything to this saga. Apparently, it is part of Finnish culture that once someone is down, it’s open season to keep kicking them.
I still like your posts. 
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@Rauli_Juva provided his comments as the Chairman of the Board of OmaSp stepped down.
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I actually got to fill in here, but I don’t have a particularly deep view on this case, so I’ll leave the rest of the discussion to @Kasper_Mellas. He’ll be back next week.
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OmaSp’s Chair of the Board stepped down, and the former Chair of the Board of Liedon Säästöpankki was elected to replace him. At the same time, Ossa is the Chair of the Board of the Liedon Säästöpankki Foundation. This foundation is OmaSp’s third-largest shareholder. A questionable dual role. I would say that Ossa specifically has a significant conflict of interest. On the other hand, it’s a nice reward for a side gig: a €55,000 annual fee and €1,000 per meeting.
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Kauppalehti is at it again (paywall):
There is currently a listing for sale on Etuovi from that same project, where well over 90% of the debt-free asking price consists of debt. And there are no renovations explaining the debt. On top of that, there is the price of the plot if you redeem it.
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The Chairman is taking responsibility. One would think the CEO would also have to draw his own conclusions from these matters. I wonder if a successor is already being sought for Pasi? It’s a tricky situation, as there’s no Deputy CEO anymore. Hopefully, the new leader won’t be the former S-Bank boss Peksu Ylihuurula. Pasi should rather see this mess through to the end and then make way for fresh blood. Business has perhaps been conducted in an “old boys’ club” spirit a bit too much lately.
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On OmaSp’s Board of Directors introduction page, there is a hilarious mention regarding the independence of the board and management:
https://www.omasp.fi/sijoittajalle/johto-ja-hallinnointi/hallitus-ja-sen-valiokunnat
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I’ve considered the controversy surrounding the company to be quite overblown until now. And maybe I still feel that way, but that is a pretty stark picture of their lending practices.
If LTV ratios in housing company loans are already significantly exceeding 90%—and one might even ask if they have effectively gone over 100% somewhere—how on earth is the collateral valuation handled, or is any independent assessment done at all? If this is the bank’s way of operating, the urban legends presented in this thread regarding the flexibility of lending to private investors are starting to seem completely credible. Quite wild indeed.
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