Wilshire Financial Services Group Inc., which emerged from bankruptcy in June, said late Thursday that it had suspended its chief executive officer, Andrew Wiederhorn, and president Lawrence Mendelsohn for about two weeks.
The company said the suspensions would offer the board "an opportunity to consider significant issues relating to the leadership and strategic direction of the company."
The suspensions could become permanent. The board, which includes four new outside directors, is considering appointing a new management team. Meanwhile, an unidentified consultant was hired to run Wilshire's day-to-day affairs. Wilshire filed for Chapter 11 bankruptcy on March 3.
The $798 million-asset Wilshire performs an array of financial services, including correspondent lending, loan portfolio acquisition, loan servicing, and securitization. It also is the parent of First Bank of Beverly Hills. -- Matt Andrejczak