Former Flagstar Bancorp CEO leaves for good
Michael Tierney announces resignation
A year ago, Michael Tierney announced plans to step down from the top job at Flagstar Bancorp (FBC) to return to his old position of executive vice president of personal financial services.
Now, it looks like Tierney is leaving the bank altogether.
The company announced in a securities filing that Tierney gave his resignation this week. It takes effect Jan. 31, 2014. The move comes less than a year after he stepped down from the company’s top job.
Tierney was CEO at a time when Flagstar was still dealing with legacy mortgage issues. Last year, the bank was forced to pay millions of dollars to settle with mortgage bond insurers over loan securitizations that ended up leading to extensive losses.
However, at least one group of analysts has grown somewhat fond of Flagstar, with Compass Point Research & Trading Group rating the Detroit-based bank's stock as a "buy" with a price target of $23 per share, up from $21.
The reason for this newfound optimism is simple: Flagstar has a large portion of reps and warrants claims over mortgages now resolved.
Crain’s Detroit Business quotes Tierney as saying he has many opportunities in front of him and is proud of the group’s job in turning the bank around this past year.