Banks
Sambol to Lead BofA Mortgage Business
By Debra Borchardt
Staff Reporter
2/1/2008 3:01 PM EST
URL: http://www.thestreet.com/newsanalysis/banking/10401694.html
Bank of America
(BAC)
on Friday said Countrywide Financial
(CFC)
COO David Sambol will run a combined consumer mortgage business once the bank's planned acquisition of the struggling mortgage lender is complete.
Sambol, who has been at Countrywide since 1985, will continue in his current role reporting to CEO Angelo Mozilo until the $4 billion merger closes. That is expected in the third quarter.
Additionally, Bruce Hammonds will assume the newly created role of global consumer credit executive when the purchase closes, Bank of America said. Hammonds came to the bank in 2006, when it bought MBNA.
Hammonds will be in charge of all consumer credit products, including the consumer mortgage organization, Bank of America Card Services and unsecured lending. Sambol will work with Hammonds on the integration and ultimately will report to him when the transaction closes.
The deal, while hailed by many as a solution to Countrywide's problems, is facing some potential hurdles. Florida's attorney general subpoenaed the company last month for documents related to an investigation into possible unfair and deceptive business practices. SRM Global, a hedge fund run by former UBS
(UBS)
trader Jonathan Wood, on Thursday announced that it had taken a more than 5% stake in Countrywide as of Jan. 24 and didn't believe the merger provides value to the lender's shareholders.
Ultimately, Countrywide will be folded into a merger subsidiary, Red Oak Merger Corp., according to the merger agreement. The merger subsidiary will become the surviving company. Scott Silvestre of Bank of America was unable to say whether Sambol would be a part of Red Oak or Bank of America.
