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What: Shares of Texas bank Sterling Bancshares
So what: There's a good old-fashioned rumble brewin' at Sterling. TAC Capital, the largest shareholder of the $590 million bank, sent a letter to Sterling's management saying in no uncertain terms that it has lost confidence in the folks running Sterling and wants them to take a hike. TAC is nominating five people for Sterling's board, a move that -- if approved by shareholders -- could lead to the ouster of the bank's current management team.
Now what: I can't say I'm terribly familiar with TAC Capital, but the nominees it's picked for Sterling's board do sound well qualified. The group includes TAC CEO Donald Adam, who "built First American Bank, SSB, from a collection of 14 failed Texas financial institutions he purchased from the U.S. government, and served as First American's CEO for 17 years, growing it into the largest privately held bank in Texas." So it would seem that Adam has the know-how to turn around a struggling bank. But investors may want to check their excitement a bit. Though Sterling's charge-offs have declined since last year, nonperforming assets are up sharply and, to date at least, there's been no magic potion found to turn bad loans good again. There's also no guarantee that TAC will even be able to push its director nominees through.
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Fool contributor Matt Koppenheffer does not own shares of any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFoolor on his RSS feed. The Fool's disclosure policy assures you no Wookiees were harmed in the making of this article.