John A. Thain, former Merrill Lynch CEO, resigned last week from his Bank of America post after continued losses related to the bank’s acquisition of Merrill. This comes amid revelations that Thain had orchestrated a quick and surreptitious payout of large bonuses to employees just before the buyout deal closed. I am almost sympathetic to this last point; Thain made a last ditch effort to protect his employees in an uncertain time (albeit using government money). I am less sympathetic to his recent $1.2 million office remodeling; I’m pretty sure I could find some classy and sophisticated office decor for no more than five, maybe six, hundred thousand dollars. But where he really comes off as a mismanaging, opportunistic prick:
But after Merrill appeared to be safely in Bank of America’s arms, Merrill’s traders began buying risky mortgage assets, thinking that the market had bottomed out, according to two people familiar with the firm’s trading. Merrill also began to run up losses on equity derivatives and other instruments, they said.
So after virtually going bankrupt from bad mortgage investments, Merrill went and lost another five billion dollars doing the exact same thing, leaving Bank of America in even deeper shit than the considerably deep pile of shit it was already in. Kind of a dick move, John.