Aames Financial Chooses Industry Veteran as New CEO

Aames Financial Corp. said its board appointed financial services veteran A. Jay Meyerson as chief executive of the subprime home-equity lender.

“The appointment of Jay is the last phase of a management transition plan that ensured a seamless and orderly succession,” said Mani Sadeghi, an Aames director who has been acting as interim chief executive since May.

Meyerson, 52, most recently served as a managing director at KPMG national financial services’ consulting practice. Before that, he was chief executive and chairman of KeyBank USA, the national consumer finance business of KeyCorp, from 1994 to 1997, and has held senior positions at Wells Fargo Bank, Ameritrust Corp. and Society Corp.

Aames shares have plunged from nearly $40 in 1996 to under $1 now on the New York Stock Exchange, as the company has reeled from massive losses in its subprime lending business and from a severe reduction in funding sources on Wall Street.

Aames is in the process of recapitalizing with an infusion of money from its largest shareholder, Capital Z Financial Services. Aames’ stock rose 13 cents to 88 cents on Monday.

“Jay brings operating experience, analytical depth and well-established leadership abilities to Aames,” Sadeghi said. “His appointment is a major step toward the achievement of our strategic objectives of positioning Aames as a prudent, profitable and innovative leader in the home equity industry.”

“I look forward to leading Aames as the company’s turnaround is gaining momentum,” Meyerson said in a statement. “I am confident that we can now focus on the execution of our business plan to create significant value for our shareholders, nationwide customer base and our broker network.”

Aames operates 102 retail branches and 44 broker offices nationwide.