Cathay Bank Chairman Quits After Governance Dispute, Family Feud

Cathay United Bank Co. Chairman Kuo Ming-jian resigned on March 18, 2024, following a regulatory breach at the bank's asset management affiliate. This breach was linked to Kuo's outside positions and a physical altercation with a member of Taiwan's billionaire Tsai family. The incident prompted an investigation by Taiwan's Financial Supervisory Commission (FSC), which found that Cathay United Bank had failed to adequately supervise its asset management subsidiary. The FSC imposed a fine of NT$2 million (approximately $61,000 USD) on the bank and ordered the removal of its general manager. Kuo's resignation is seen as a consequence of these governance issues and the personal dispute. The FSC's statement highlighted that the bank's internal controls were insufficient to prevent the affiliate from engaging in activities that violated regulations, particularly concerning the chairman's external business dealings. This event underscores the importance of robust corporate governance and regulatory compliance within financial institutions.