Danny Payne, the former commissioner of the Texas Department of Savings and Mortgage Lending, has a new job: turnaround specialist.
Mr. Payne, who resigned from the department at the end of last year to pursue opportunities in the private sector, has joined the Dallas investment and consulting firm Stone Advisors LP as a partner.
Stone invests in troubled assets and consults with ailing financial companies. Mr. Payne, as part of its team of former bankers, will help it take over and fix up deeply troubled banks.
"We can go in there and replace all senior management on a consignment basis," he said Tuesday. "We keep the bank running for them and deal with regulators. If it is something we can't bring back to life, then we are in a position to assist regulators in liquidating the institution."
Mr. Payne has 39 years of experience in the financial sector.
In a May 21 press release announcing his hiring, Brad Oates, Stone's chairman said Mr. Payne is joining at an opportune time.
"A number of financial institutions will need to be recapitalized, and an increasing number will be taken over by regulatory officials," Mr. Oates said. "Danny Payne brings a tremendous record of helping troubled financial institutions be successfully turned around."
