Bank of America names new boss for bad mortgages
CHARLOTTE, North Carolina
CHARLOTTE, North Carolina (Reuters) - Bank of America Corp has appointed an executive from its Merrill Lynch investment banking unit to oversee its $1 trillion problem loan portfolio, the company said on Thursday.
Ron Sturzenegger, 51, replaces Terry Laughlin, who was appointed Bank of America's chief risk officer last month. The legacy asset servicing division, created earlier this year, manages the bulk of the bank's troubled mortgage portfolio.
The expected change comes amid investor fears the bank will need to raise additional capital to cope with its problem home loans. Since January, Bank of America's share price has been cut roughly in half.
Sturzenegger, who joined Bank of America in 1998, was global head of its corporate and investment banking unit, focused on real estate, gaming and lodging. Like Laughlin, he will report to Chief Executive Brian Moynihan.
Sturzenegger also worked as a team leader in the bank's ongoing expense review, known as "New BAC," and reviewed possible expense cuts within the bank's home loans unit.
Bank of America is expected to announce the results of that review with its third-quarter earnings results in October.
A company spokesman said Sturzenegger will not continue that work in his new role.
The move also completes a management reshuffling that began earlier this year when Chief Financial Officer Charles Noski stepped down in April from the post after less than a year on the job to become the company's vice chairman.
Noski was replaced by then-Chief Risk Officer Bruce Thompson.
Laughlin, 56, was in turn promoted to replace Thompson.
Bank of America is the largest U.S. bank by assets.
(Reporting by Joe Rauch. Editing by Robert MacMillan, Dave Zimmerman)
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