Chemical Banking Corp. is about to recognize several key retail units, consolidating even more power in the hands of former Manufacturers Hanover officials. The changes, expected to be announced internally this week, appear to signal a shift from implementing the merger to building revenues, according to well-placed sources.
Details are sketchy, but insiders said that Michael Hegarty, a senior executive vice president in charge of all branch banking, will get control of nationwide consumer products, including credit cards, home mortgages, consumer finance, and student loans. Commercial real estate finance, which also had been run by Mr. Hegarty, is likely to be shifted to the bank's corporate finance group.
The consumer product group had been run by Edward A. O'Neal, a Chemical veteran who left last summer to join Bank of Boston. His group was temporarily overseen by vice chairman Edward D. Miller, who hails from Hanover.
Sources said the shift of power to Mr. Hegarty could trigger the departure of some consumer group executives - including the Chemical-reared mortgage and student loan chief Thomas Jacob and the Hanover-schooled credit card chief, Charles R. Walsh.
The executives could not be reached for comment.
Joseph G. Sponholz, who was Chemical's chief financial officer before being assigned as "merger implementation manager," will report to Mr. Miller as executive vice president in charge of administration and finance management for the regional banking group, the sources said.