CHARLOTTE, N.C. (AP) — Bank of America Corp. said Friday it has tapped Terry Laughlin to be the lender’s chief risk officer.
Laughlin is now head of the Charlotte-based company’s legacy asset servicing business.
The bank that Paula Dominick, its global compliance executive, will fill in as chief risk officer until Laughlin takes over late in the third quarter.
The previous chief credit officer, Bruce Thompson, recently moved to the post of chief financial officer.
Bank of America CEO Brian Moynihan noted that Laughlin has helped the company make significant progress dealing with its legacy mortgage issues.
The bank has been facing lawsuits from investors over poorly written mortgages.
Last month, the lender agreed to pay $8.5 billion to settle investor claims — the largest that any bank has ever paid. The settlement also eclipses the bank’s last three years of earnings.
Bank of America continues to fight other investor groups that are demanding similar settlements. Lawsuits from the Federal Home Loan Bank of Boston, bond insurers MBIA and Syncora Holdings linger. And Bank of America is likely to be ordered to pay a hefty portion of the estimated $20 billion multi-bank settlement over the mishandling hundreds of thousands of home foreclosures.
One reason Bank of America is in worse shape than other major banks like JPMorgan Chase & Co. and Wells Fargo & Co., is its purchase of Countrywide Financial Corp. for $4 billion in 2008.
What seemed like a bargain price for the country’s largest mortgage lender has cost the bank tens of billions more in mortgage losses, regulatory fines, repurchases of poorly written loans and expensive litigation. At the same time, Bank of America itself had written a fair amount of bad mortgages.
As it stands, the bank services one out of every five U.S. mortgages.
Bank of America shares added 1 cent to $10.71 in aftermarket trading. The shares ended the regular session down 22 cents, or 2 percent, to $10.70.