MNC executive quits as shuffle goes on

February 13, 1991|By Peter H. Frank

The chief financial officer of MNC Financial Inc. jumped to the company's former credit-card division yesterday as part of an executive reshuffling at the top of the Baltimore banking company.

Harry G. Pappas Jr., who came to MNC from Equitable Bancorporation in the merger of the two companies last year, left MNC to become executive vice president in charge of all financial functions at MBNA Corp., a newly created company that was spun off by MNC last month, said an MBNA spokesman, Robert V. DeSantis.

Mr. Pappas, who was chief financial officer at Equitable, has long been an executive under Alfred Lerner, former chairman of Equitable and current chairman of both MNC and MBNA.

Mr. Pappas was the only executive to leave MNC, according to yesterday's announcement, but his departure was part of a series of moves at MNC that affected virtually every position at the highest levels of the company.

MNC said the moves were "further steps towards a fully consolidated organization structure." The changes were described as a continuation of a plan begun last year to cut costs and reorganize the state's largest banking company along discrete lines of business rather than along separate banking units.

Since that time, MNC also has applied to federal regulators to merge its two banking subsidiaries, Maryland National Bank and American Security Bank in Washington, to help simplify the company's structure.

As part of the reshuffling, MNC said that H. Grant Hathaway was named president and chief executive of MNC's two banking subsidiaries but would no longer be chairman of Maryland National Bank.

Mr. Hathaway, who was president and chief executive of Equitable before the merger, will continue as vice chairman of MNC, said Daniel G. Finney, a company spokesman.

In addition, Frank P. Bramble, executive vice president of MNC, has been appointed chief operating officer at the holding company and at the two banks, giving formal title to positions he has effectively held for months, Mr. Finney said.

Peter L. Gartman, who had been replaced in an earlier move as chief financial officer at MNC by Mr. Pappas, was renamed to that post and will be treasurer at the holding company and at the two banks. Mr. Gartman, who has been in charge of selling numerous subsidiaries of MNC, will continue to be responsible for all funding activities at the company, MNC said.

Mr. Hathaway replaced William H. Daiger Jr. as president and chief executive of Maryland National and Daniel J. Callahan III as chief executive of American Security.

Mr. Daiger will continue as executive vice president of MNC in charge of the company's community banking activity, Mr. Finney said.

Mr. Callahan, former chairman of American Security and president of MNC, will be executive vice president of MNC overseeing the company's large corporate accounts.

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