Bank of America Corp (NYSE:BAC)’s unscrupulous ex-executives back in action
Over the past few years, numerous Bank of America Corp (NYSE:BAC) executives have been under scrutiny and their work on various mortgage bonds has been the subject of lawsuits filed by the Justice Department and U.S regulators. One former BAC employee, Adam Glassner has now been hired by Fannie Mae which is a government-backed firm.
Glassner’s name featured as a defendant in a complaint that had been filed on 2011 September, by the FHFA. This agency regulates Fannie Mae over the losses that have been incurred by the firm. He joined FNA in 2012 January and was in their employ until this year. According to a person who is acquainted with this career, last week, Glassner had also been referenced as a BAC Securities Managing Director in one Justice Department lawsuit against the bank.
A clean image
Glassner’s hiring is a classic example of the dilemma the government is in, even as the United States has been recruiting skilled-managers to sort this mortgage mess from an industry that was responsible for creating it. In this particular case, FNMA hired a banker whose professional conduct had been the center of criticism by its very own regulator hardly 5 months ago.
The one major issue is that there are not a sufficient number of experts in the market who have a squeaky-clean background. The only expectation that people connected with the industry have is that these agencies should hire from a population that has mortgage-expertise but also ensure that these people have not been involved in any kind of unethical or disruptive conduct which was the reason for the crisis.
Glassner had not been named as a defendant in the civil case that had been filed by the Justice Department in North Carolina’s Federal Court. The separate lawsuit that had been filed by the FHFA alleged that BAC and executives like Glassner are liable for putting forward statements that were materially misleading.