Bloomberg Law
Sept. 4, 2020, 7:24 PM

Ex-Flagstar CEO Can Seek Disputed $16 Million Golden Parachute

Jacklyn Wille
Jacklyn Wille
Legal Reporter

Flagstar Bancorp’s former chief executive officer advanced claims he’s owed nearly $16 million in executive compensation and consulting fees, when a Manhattan federal judge on Friday found a factual dispute exists over whether the bank could seek regulatory approval for the payment.

Flagstar’s argument that it was “legally powerless” to pay Joseph Campanelli’s benefits is “plainly improper,” Judge Paul A. Engelmayer of the U.S. District Court for the Southern District of New York said. Flagstar’s position is based on attorney argument—which isn’t evidence—and a consent order with the Consumer Financial Protection Bureau, which can’t be used to support the bank’s ...

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