Flagstar CEO steps down, moves to his old position
Lender Flagstar Bancorp (FBC) announced an executive shake-up this week.
The Michigan-based firm reported that its current CEO and President Michael Tierney is stepping down from the top job and returning to his previous position, executive vice president of personal financial services.
The bank, which recently was forced to pay out millions of dollars to settle with mortgage bond insurers over home loan securitizations, appointed Alessandro ("Sandro") DiNello president and chief executive officer of both the company and the bank.
Lee Smith also was appointed chief operating officer.
DiNello's CEO appointment is effective immediately. He previously served as president and chief administrative officer for the bank, overseeing banking operations, commercial banking and personal financial services.
Flagstar has faced serious payouts in recent months as the firm continues to resolve legacy mortgage issues.
The bank agreed to pay $110 million to end a dispute with MBIA (MBI) over insured bonds backed by second-lien mortgages.
A federal district court also ruled Flagstar Bancorp will have to pay $106 million to settle a dispute over RMBS transactions that Assured Guaranty insured for the Michigan-based bank.