Tuesday, June 5, 2012

Former Bank of America general counsel named CEO of Fannie Mae

Timothy Mayopoulos, the former Bank of America general counsel who was abruptly fired in 2008, was appointed Tuesday as the new CEO of mortgage giant Fannie Mae.

Mayopoulos, 53, joined Fannie Mae three years ago and served as executive vice president, chief administrative officer and general counsel. 

Last month, Fannie reported a first quarter profit of $2.7 billion and no taxpayer support for the first time since the U.S. Treasury placed it under conservatorship in 2008.

Mayopoulos plays a key role in the story of the acquisition of Merrill Lynch at the height of the financial crisis in 2008.

Despite internal messages between Bank of America executives through November 2008 about the size of Merrill Lynch's ballooning losses, and a Dec. 3, 2008, meeting about them between then-CEO Ken Lewis, then-Merrill Lynch CEO John Thain and several other executives,  Mayopoulos has testified that he was never told of just how big they had gotten until Dec. 9, 2008 -- two business days after the deal was approved by shareholders.

The next morning, he was fired and escorted from the building without being able to pack up his things.

Shareholders have implied Mayopoulos was forced out because of what he knew about the Merrill acquisition. Attorneys for Lewis have stated in legal filings that he was fired to open up a senior management position for Brian Moynihan, who was on the brink of leaving the bank. Moynihan is now CEO.


Skippy said...

Perfect, fired by Bofa hired by Obama. Joke is on us and you liberals.

Anonymous said...

A gigantic, failed government agency hires a man with an axe to grind that will likely spend all of his time trying to "get" the bank that fired him. Swell.