Shakeup on Countrywide deal

Bank of America is still buying the big mortgage lender. But it's not bringing on board Countrywide's president and COO, David Sambol. Instead, Barbara Desoer, now B of A's chief technology officer, will be in charge of mortgage operations. No explanation was given for the turnabout, other than bank honchos concluding that Desoer would be the best person for the job (she's often mentioned as a possible successor to CEO Ken Lewis). What we do know is that Sambol was given a $28 million incentive package to join Bank of America, which did not go down well among Countrywide shareholders who have lost some serious money from a plunge in the stock price. And get this - he'll still be collecting the $28 million! Guess they had no choice, but it’s certain to tick off a bunch of folks. From the WSJ:

Speculation has swirled for months that the deal could fall apart, but putting Ms. Desoer in charge is a sign that Bank of America is turning its attention toward how to squeeze value out of Countrywide. With the takeover expected to close in the third quarter, Bank of America officials have become uncomfortable with certain problems at Countrywide, including sloppy underwriting, according to people familiar with the situation.

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David George, an analyst at Robert W. Baird & Co., said he was surprised by Mr. Sambol's departure, which could make "the transition somewhat more difficult." Still, the shuffle should dispel any lingering doubts about Bank of America's intentions of going through with the acquisition. "It appears that it's all but a done deal," Mr. George said.

Here's a snippet from Scott Reckard's story in the LAT:

Desoer, 55, has roots in California, having been a retail banking executive for San Francisco-based BankAmerica Corp. before it was acquired by NationsBank Corp. in 1998 in the transaction that created the current Bank of America, which is based in Charlotte, N.C. She will move from North Carolina to run the operation from Calabasas, the company said. Lewis called her "an ideal person to lead our mortgage business forward" because of her experience running Bank of America's consumer products division, including mortgages. "She understands the challenges and has a demonstrated track record of getting results," he said.