By Joseph N. DiStefano
Bloomberg News
Tuesday, July 10, 2007

Capital One Financial, the largest independent U.S. credit-card issuer, promoted Lynn Pike to head its banking business, replacing former North Fork Bancorporation chief executive John Kanas as part of a management reshuffle.

Kanas, 60, has led the banking unit since Capital One bought North Fork in December for $13.6 billion to expand home lending. Capital One's first-quarter profit plunged 24 percent, to $675.1 million, in part because of a loss from its mortgage business.

As part of the management changes, Michael C. Slocum, 50, formerly head of real estate financial services at Wachovia, will replace John Bohlsen as head of commercial banking, the McLean company said in a statement yesterday. Bohlsen was North Fork's vice chairman.

The executives' departures will trigger an after-tax charge of $27 million in the second quarter tied to accelerated vesting of equity awards for the two executives, the company said.

"Pike got her team in place, so Kanas is retiring," said Bob Hughes, a bank analyst at KBW Inc. in New York. "I don't think it's any comment on their performance."

Pike, 50, has been in banking and community development for more than three decades, including three years as president of business banking for Bank of America, the statement said.

Capital One is scheduled to report second-quarter earnings on July 19. Kanas and Bohlsen will remain advisers to the bank through 2009, with Kanas leaving the board of directors on Aug. 6.