Thain Accuses BofA of Lying About Bonuses

Former Merrill Lynch CEO denies accelerating bonuses

(NEWSER) - Merrill Lynch's former CEO issued an apology of sorts for spending $1.2 million—including $35,000 for a commode—to redecorate his office as the firm bottomed out, Bloomberg reports. “We decorated it in the style that Merrill Lynch offices were, which was very, very nice,” John Thain said at Wharton. “That was a mistake, and I'm sorry." The punchline, delivered to laughter: "If I had that to do over again, I’d furnish it in Ikea.” More»

Private bonus agreement backs up Thain's claim that Bank of America was aware of payouts

(NEWSER) - Ousted Merrill Lynch boss John Thain appears to have been speaking the truth when he said Bank of America knew all about Merrill's controversial December bonuses, the Wall Street Journal reports. A copy of a private bonus agreement obtained by the Journal shows that the two firms agreed on a combined bonus pool of $5.8 billion ahead of the bailout-funded takeover. More»

Lush renovation was a 'mistake,' says ex-Merrill CEO

(NEWSER) - Former Merrill Lynch CEO John Thain says he’ll repay the $1.2 million he spent on office renovations last year, Bloomberg reports. “The expenses were incurred over a year ago in a very different environment,” Thain wrote in a memo to Merrill execs. “They were a mistake in the light of the world we live in today. I will therefore reimburse the company.” More»

Directors unlikely to comply given public sentiment

(NEWSER) - Merrill Lynch narrowly escaped extinction this fall, and CEO John Thain is seeking an end-of-year bonus of as much as $10 million for keeping the company alive, reports the Wall Street Journal. Merrill's board of directors—acutely aware of public scrutiny—appear unlikely to fork over that kind of package when they meet today. Goldman Sachs, which performed better than Merrill this year, isn't giving top execs any bonuses this year. More»

(NEWSER) - The judge who has refused to sign off on Bank of America's settlement with the SEC over $3.6 billion in bonuses paid to Merrill Lynch delivered a stinging rebuke to both parties in a hearing yesterday, the New York Times reports. The firms "effectively lied to their shareholders" over the pre-merger bonuses, and the SEC's proposed $33 million settlement seems "strangely askew," said Judge Jed Rakoff. More»