H&R Block's Chief Exits

There has been a change at the top of H&R Block, Kansas City, Mo., a company which has taken a lot of investor heat because of its Option One Mortgage Corp., Irvine, Calif., subsidiary. Mark Ernst has resigned as chairman and chief executive of Block. Former Securities and Exchange Commission chairman Richard Breeden has been elected as the non-executive chairman of Block. Mr. Breeden led a successful proxy fight to have himself and two allies elected to the Block board, campaigning on a platform to "stop the bleeding at Option One." Block has an agreement to sell Option One to an affiliate of Cerberus Capital Management, New York, but that deal is believed to be in jeopardy with the continuing problems in the subprime market. Block's new interim chief executive is Alan Bennett, former chief financial officer at Aetna Inc. He is not a candidate for the permanent position.