Thain to Leave BofA After Record Losses

By Harry Kimball,  Newser Staff

Posted Jan 22, 2009 11:55 AM CST

(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.

Thain and Lewis in better times.
Thain and Lewis in better times.   (AP Photo)
Bank of America Corp. chief executive Ken Lewis.
Bank of America Corp. chief executive Ken Lewis.   (AP Photo)
Chairman and Chief Executive Officer of Merrill Lynch & Co. John Thain looks on during a photo-shoot in Mumbai, India, Wednesday, May 7, 2008.
Chairman and Chief Executive Officer of Merrill Lynch & Co. John Thain looks on during a photo-shoot in Mumbai, India, Wednesday, May 7, 2008.   (AP Photo/Gautam Singh)
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