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It's Official: O'Neal Out

CEO ousted after subprime writedowns, backdoor merger talks

By Kevin Spak,  Newser Staff

Posted Oct 30, 2007 10:42 AM CDT

(Newser) – Merrill Lynch CEO Stan O’Neal is retiring effective immediately, the company announced today, shocking no one. Merrill characterized the ouster as a mutual decision, but massive subprime losses and takeover indiscretions clearly marked O’Neal for the chopping block. Terms of the exit package were not disclosed, but it's expected to total close to $200 million, the Journal reports.

O’Neal brought change to Merrill, focusing it on high-profit areas, such as bundling home loans into securities. That wound up forcing the firm to take a dizzying $8.4 billion in writedowns this quarter. O’Neal then approached Wachovia about a merger without board approval. His interim non-executive replacement is 4-year board member Alberto Cribiore.

Stanley O'Neal, Chairman and CEO of Merrill Lynch & Co., is seen in New York in this Nov. 1, 2006 file photo. (AP Photo/Louis Lanzano, file)
Stanley O'Neal, Chairman and CEO of Merrill Lynch & Co., is seen in New York in this Nov. 1, 2006 file photo. (AP Photo/Louis Lanzano, file)   (Associated Press)
Stanley O'Neal, Chairman and CEO of Merrill Lynch & Co. is seen in New York in this Nov. 1, 2006 file photo. Merrill Lynch, the world's largest brokerage, said Tuesday, Oct. 30, 2007 its embattled chief executive will retire, effective immediately. (AP Photo/ Louis Lanzano, file)
Stanley O'Neal, Chairman and CEO of Merrill Lynch & Co. is seen in New York in this Nov. 1, 2006 file photo. Merrill Lynch, the world's largest brokerage, said Tuesday, Oct. 30, 2007 its embattled chief...   (Associated Press)
A Merrill Lynch office is seen in New York, Wednesday, Oct. 24, 2007. (AP Photo/Seth Wenig)
A Merrill Lynch office is seen in New York, Wednesday, Oct. 24, 2007. (AP Photo/Seth Wenig)   (Associated Press)
Merrill Lynch today cut loose CEO Stan O'Neal in the face of record subprime losses this week. O'Neal is the highest-profile casualty of the subprime collapse so far.
Merrill Lynch today cut loose CEO Stan O'Neal in the face of record subprime losses this week. O'Neal is the highest-profile casualty of the subprime collapse so far.   (Getty Images)
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