Not adding up…

June 23, 2005

Flagstar Bancorp (FBC), which last week announced that its independent auditing firm, Grant Thornton, had suddenly resigned (though not over any accounting disagreements, the release noted), sent its CFO packing yesterday. Strangely enough, the release announcing Michael Carrie’s resignation, didn’t even peddle the oft-used “personal reasons” or “more time with the family” lines.

But as the release noted, Carrie, isn’t leaving the banking company entirely. He’ll hang around through the end of next March as a consultant — one who will be paid nearly twice as much working “time to time” according to the agreement in the 8-K as when Carrie was presumably working full-time. As CFO, Carrie made just over $30K a month. But as a consultant, he’ll collect $60K.

So let’s recap the past week at Flagstar: the independent auditing firm resigns and then a 50 year-old CFO leaves and gets a hefty raise. Something isn’t quite adding up here.

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