Litigation Embroiled LPS On The Edge After CEO Quits "For Health Reasons"
LPS, which together with MERS, has long been at the heart of the fraudclosure scandal courtesy of loan appraisals which even the FDIC claims were/are fraudulent, just fired a big red warning sign about its continued existence as a going concern after the CEO, Jeffrey Carbiener, just announced he is resigning "due to health concerns." Well, everyone knows what that means. From Reuters: "Lender Processing Services Inc (LPS.N) said its Chief Executive Jeffrey Carbiener resigned due to medical reasons and would be replaced in the interim by Lee Kennedy, its executive chairman. The mortgage processing services provider said its board had established a committee to search for a replacement. Kennedy, who was the executive chairman and CEO of LPS's former parent Fidelity National Information Services, will remain the executive chairman, the company said in a statement." Somehow we doubt the market will be too happy with this development, which could well be the beginning of the end for the $1.7 billion company.
Carbiener has agreed to serve in an advisory capacity, at a time when LPS is facing various faces various legal and regulatory issues over its alleged role in wrongful foreclosure practices.
Shares of the Jacksonville, Florida-based company were down 5 percent at $19.50 in trading after the bell. They closed at $20.54 on Wednesday on the New York Stock Exchange.
Coming at a time when there is an increasing scramble by the big banks to settle putback claims litigation, the departure of one of the key chess pieces is likely a notable development. However, as to how this impacts the big game, or what the other pieces are likely to do at this point, nobody knows. The situation is beyond fluid.
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