Ask any homeowner how difficult it is to speak to a live person in a loss mitigation department and here’s what they’ll tell you: next to impossible. In those rare occasions when a homeowner does get through to someone they rarely find someone on the other end, knowledgeable on the other side and understanding of their concerns. These loss mitigation departments are disconnected from the public. Given the corporate leadership vacuum that exists in most banks today should we really be that surprised?
Ken Lewis, CEO of Bank of America looks like a deer caught in the headlights as Congresswoman Maxine Waters asks him about his offshore loss mitigation efforts. Instead of appearing poised and collected as a Fortune 500 CEO should, Mr. Lewis came off as completely ignorant of the loss mitigation processes going on in Bank of America.
Pretty scary isn’t it?
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As Congresswoman Waters grilled the CEO about his Banks’ utter failure to assist the American people, Mr. Lewis appeared indifferent.Maxine Waters could have been speaking in Greek as far as any competent observer could tell.
As Congresswoman Waters grilled the CEO about his Banks’ utter failure to assist the American people, Mr. Lewis appeared indifferent. Maxine Waters could have been speaking in Greek as far as any competent observer could tell.
What amazes me most is not the insensitive, cocky attitude of a disconnected CEO. The most amazing thing is that banks and mortgage servicers are routing loan workout calls to call centers abroad to save a few pennies while the flood of consumer inquiries for loan workouts skyrockets. This problem is compounded by the completely inexcusable indifference and ignorance of B of A’s Mr. Lewis.
If the CEO of Bank of America and now Countrywide doesn’t know what the risk management people in his own company are up to then what hope is there that conditions will improve for the millions of homeowners tied to B of A and Countrywide loans?
If the CEO of the world’s largest lender is this disconnected from the risk management process then how did this man ascend the corporate ladder?
I predict that Ken Lewis’s days are numbered. I give him 90 days or less and he’ll be gone for good. Let us hope that in his wake a new CEO will come to the fore, responsible to his client’s, receptive to the American people and, for goodness sake’s…let’s hope this new CEO will eliminate the shameful outsourcing of loss mitigation to offshore call centers.
Here is Congressman Barney Frank, Congresswoman Maxine Waters, Morgan Stanley CEO John Mack and Bank of America CEO, Ken Lewis most memorable moments during the hearing on Keith Olberman last night.
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