Countrywide Exec to Take Helm at Bank of America Mortgage Unit

January 31, 2008 No Comments »

Countrywide Chief Operating Officer David Sambol will head Bank of America’s mortgage unit once the merger is completed later this year, the Charlotte-based bank said today.

Sambol, who is currently second in command behind CEO Angelo Mozilo, will report to Bruce Hammonds, who will become global consumer credit executive when the merger closes.

It is believed that Sambol will focus on integrating Countrywide’s extensive business model with that of Bank of America’s, though it’s unclear what operations will be transferred, such as wholesale and correspondent lending.

Earlier this week, Countrywide reported a fourth-quarter loss of $422 million, leading a full-year loss of $704 million, the mortgage lender’s first annual loss in more than 30 years.

Shares of Countrywide were up 26 cents, or 4.02%, to $6.73 in early afternoon trading, sporting a market cap of about $3.9 billion.

Earlier this month, Bank of America agreed to pay $4.1 billion in stock for the ailing mortgage lender.

In related news, hedge fund SRM Global, which holds about a five percent stake in Countrywide, said the proposed merger “does not provide sufficient value” to its shareholders and may attempt to speak with the companies and/or shareholders to negotiate a better deal, Reuters reported.

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