Bank of America just made Ron Sturzenegger its head of troubled mortgage unit — the one that’s handling all of the soured Countrywide Financial mortgage loans. Those are the loans that contributing a lot to Bank of America’s recent share price crash (it’s down again today) as investors worry that the firm has a black hole of liability and losses.
Sturzenegger has been a big name in Bank of America real estate investment banking for years. Before named the head of the troubled mortgage unit, Legacy Asset Servicing, he was Bank of America’s global head of real estate, gaming and lodging corporate and investment banking, and before that he was head of the firm’s real estate investment banking.
So it’s kind of like he just went from hot shot investment banker to real estate janitor. His new job will be considerably more thankless than his old one. Unless of course he’s able to perform a miracle. But Bank of America is not counting it as the firm is having a huge fire sale in order to get the capital it needs to hit capital requirements and to cover mortgage losses.
According to an internal memo, Terry Laughlin, the Legacy unit’s former head, will transition as planned from the head of Legacy Asset Servicing to the bank’s chief risk officer.