Countrywide's Sambol out in BofA takeover

News item from Scott Reckard of the L.A. Times: "Showing Countrywide Financial Corp. President David Sambol the door, Bank of America Corp. said today that it would appoint one of its own top executives to oversee mortgage operations after completing its acquisition of Countrywide."

More: "When it announced in January that it would buy struggling Countrywide, Bank of America said that Sambol, the No. 2 executive to Countrywide founder and Chairman Angelo Mozilo, would stay on to run the nation's largest home-loan operation from Calabasas, where Countrywide is based.

"But that role will now be handed to Barbara J. Desoer, Bank of America's chief technology and operations officer and a member of the bank's management operating committee."

From the BofA press release: "She will be based in Calabasas, California. David Sambol, president of Countrywide Financial Corporation, will retire after assisting Desoer with the transition."

Your thoughts? Comments? E-mail story tips to peter.viles@latimes.com.

Comments

[Duke of Moral Hazard]

Wow... they have decreed that he will retire?

By the way, I want to buy a company for pennies on the dollar and don't want their debt. How does one do that? Can someone make that part simple?

[Michael Snyder]

That's about the first remotely sensible thing to come out of this merger. I'm still looking for the back room concessions on the anti-trust provisions regarding the total amount of available deposits in the nation any one bank can hold. That limit is now set at 10% but this merger would exceed that limit by 1%. That sounds minuscule enough to allow an "exception" but gutting these provisions will inevitably lead to another round of bank "consolidation" that will not be good for consumers. Now, how will they ever replace Angelo???

[ART]

Most of us were expecting CW to be moved to NC, where BoA is based. I guess this saves the city of Calabasas and the surrounding cities, for now.

[William Jones]

I am completely shocked that BofA would not keep the hardworking, talented, and ethically gifted Countrywide management team in place after the takeover.

[Cal]

BofA isn't really getting anything from the CFC deal except headaches. We see what an albatross servicing rights are (supposedly the "jewel" in the CFC takeover). When you slam people into subprime loans and service those same loans you look like a bad person coming and going. BofA has a pretty good rep and to inherit the issues of all those people wanting loan mods (something defined by the PSA not the servicer) taints BofA with the stink of CFC.

Then you have the liability of the retained portfolio. Even if they drop all the really bad stuff off at the shell company and have it declare bankruptcy there is still the issue of getting any value from the transaction.

They aren't getting management experience (turns out slamming people into loans during a credit bubble doesn't require that much skill), the technology isn't some new thing, loan servicing is just another name for people calling up and yelling at you, and it isn't like they need the CFC banking arm.

I still don't get it. Unless the fed is involved and telling BofA to take the hit for the team. And even if they are the price should be close to zero.

[Joseph...The Real Estate Guy]

As I have written many times on this blog, I see the bottom in 2012!

B of A should get rid of all Countrywide executives. They don't deserve to be in the mortgage industry...

[Duke of Moral Hazard]

"Sambol's retention package also extended his fringe benefits at Countrywide, including "use of a company-provided car or car allowance, country club dues and financial consulting services" through the end of 2009."

Laura Richardson should just hang with Sambol. She can turn in the towncar and use his when he's on the links or jetting to Panama. Plus she can give him tips on how to lose money in real estate. USC MBA...yep, that about sums it up.

Maybe BofA can send out a press release decreeing Richardson's resignation as well?

[Cal]

Michael Snyder,

The 10% deposit rule was already addressed, there is an exception in place if the entity being acquired is a thrift.

I always thought Mozilo switched to being a thrift to get away from certain regulators who were being hard nosed. But maybe he was being more clever to set up an acquisition. Although at this point I think he just dumb lucked into things.

[Lou]

Sambol is a scumbag who would get mad it the salesforce was not pushing Neg-Am loans all the time.