Thain to Leave BofA After Record Losses
By Harry Kimball, Newser Staff
Posted Jan 22, 2009 11:55 AM CST
Thain and Lewis in better times.   (AP Photo)

(Newser) – Former Merrill Lynch CEO John Thain, who became a top exec at Bank of America when the firms merged last year, will resign from his position, CNBC reports. The move comes a week after Bank of America posted its first quarterly loss in 17 years, widely attributed to poor information about Merrill’s financials at the time of acquisition. To cover the sour deal, BofA has secured $20 billion in federal funds.

Bank of America’s bailout package now totals $45 billion, equal to Citigroup's. Last quarter, Merrill lost a record $15.31 billion, surprising BofA officials who had done due diligence on the investment bank. Other revelations about Merrill included its revamped bonus schedule, which called for payouts before the acquisition, and the fact that Thain spent $1.22 million on his office a year ago.

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Showing 2 of 2 comments
Guest
Jan 22, 2009 3:40 AM CST
Hell no. And with the high efficiency he has shown in fleecing the tax-payer, it will be a big plus on his resume as well.
Guest
Jan 22, 2009 12:03 AM CST
This won't affect his bonus, will it?