Bank of America Decides Not to Retain Countrywide's No. 2 Executive

Los Angeles Times (05/29/08) ; Reckard, E. Scott; Kristof, Kathy M.
Bank of America has announced that Countrywide Financial's second in charge will not lead the combined mortgage operations of the merging firms, adding that BofA will instead turn to its longtime executive Barbara Desoer, who currently serves as chief technology and operations officer and is a member of its management operating committee. The Charlotte, N.C., bank had indicated that Countrywide President David Sambol would run the consolidated home loan operations when it agreed to acquire the mortgage lender in January, but it now says its wants to take a more conservative approach to home lending and to bring BofA's culture to the business. Stuart Plesser, bank analyst at Standard & Poor's Equity Research, described the move as an attempt by BofA to "disassociate itself from the Countrywide brand." The aggressive lending practices of Countrywide have been widely criticized for contributing to the current problems in the housing and mortgage markets.