Elduardo
01-22-2009, 07:33 PM
Report: Merrill Lynch CEO Spent Over $1M to Redecorate Office
Before Accepting Bailout Billions, Exec Said To Have Hired Decorator-To-The-Stars; Purchased Luxury Furnishings
By MEGAN CHUCHMACH and JUSTIN ROOD
January 22, 2009
Less than one month into his new gig at the Bank of America, Merrill Lynch CEO John Thain resigned today after it was revealed that he doled out executive bonuses a month ahead of schedule and just days before his struggling Merrill Lynch firm was acquired by the BofA.
A new report says that Merrill Lynch CEO John Thain spent over $1 million to redecorate his office.
(AP/ABC News)Although no reason was given for his resignation, a spokesman for Bank of America, which acquired Merrill Lynch at the beginning of this year in a government-negotiated deal to save it from collapse, issued a statement saying: "(BofA Chairman and CEO) Ken Lewis flew to New York today to talk to John Thain. And it was mutually agreed that his situation was not working out and he would resign."
The amount in bonuses paid out was between $3 and $4 billion, according to the Financial Times. Exorbitant Wall St. bonuses have garnered increased attention since the economic collapse and subsequent billions in bailout funds have gone to help companies stay afloat.
Bank of America, which received $25 billion in bailout funds before being handed an addition $20 billion last week, said Thursday that it knew Thain gave the incentives ahead of time.
"Merrill was an independent company until Jan. 1 of 2009," said spokesman Scott Silvestri. "John Thain decided to pay year-end incentives in December, as opposed to their normal date in January. Bank of America was informed of his decision."
Report Says Thain Spent Over $1 Million To Redecorate Office
To make matters worse, Thain is now facing more criticism for reportedly spending $1.2 million to lavishly decorate his Merrill Lynch office early last year while the firm was fighting to survive.
Thain splurged on interior designs from the Obama's chosen White House decorator Michael Smith ($800,000), two area rugs ($131,000), two guest chairs ($87,000), a 19th Century credenza ($68,000), four pairs of curtains ($28,000), and a mahogany pedestal table ($25,000), according to Charlie Gasparino, the CNBC contributor and Daily Beast columnist who broke the story.
Other items mentioned: six dining room chairs ($37,000), a George IV Desk ($18,000), a custom coffee table ($16,000), a sofa ($15,000), a chandelier ($13,000), a mirror ($5,000), six wall sconces ($2,700).
Also reported to be on the list was a trash can for $1,400.
Bush again is taking the heat for the bailout. And he should, he supported it. But so did Obama and McCain, and Hillary.
This is flat out corruption. Hard working people lost their money in Merrill Lynch and this guy is paying out 3-4 BILLION dollars in bonuses? While the firm sinks and then accepts bailout money?
The remaining bailout money should be returned to the taxpayers and the 800+ billion dollar stimulus Obama is proposing should be defeated.
Enough of this. It isn't working and all it's going to accomplish is to get the country further into debt.
What a disgrace.
Before Accepting Bailout Billions, Exec Said To Have Hired Decorator-To-The-Stars; Purchased Luxury Furnishings
By MEGAN CHUCHMACH and JUSTIN ROOD
January 22, 2009
Less than one month into his new gig at the Bank of America, Merrill Lynch CEO John Thain resigned today after it was revealed that he doled out executive bonuses a month ahead of schedule and just days before his struggling Merrill Lynch firm was acquired by the BofA.
A new report says that Merrill Lynch CEO John Thain spent over $1 million to redecorate his office.
(AP/ABC News)Although no reason was given for his resignation, a spokesman for Bank of America, which acquired Merrill Lynch at the beginning of this year in a government-negotiated deal to save it from collapse, issued a statement saying: "(BofA Chairman and CEO) Ken Lewis flew to New York today to talk to John Thain. And it was mutually agreed that his situation was not working out and he would resign."
The amount in bonuses paid out was between $3 and $4 billion, according to the Financial Times. Exorbitant Wall St. bonuses have garnered increased attention since the economic collapse and subsequent billions in bailout funds have gone to help companies stay afloat.
Bank of America, which received $25 billion in bailout funds before being handed an addition $20 billion last week, said Thursday that it knew Thain gave the incentives ahead of time.
"Merrill was an independent company until Jan. 1 of 2009," said spokesman Scott Silvestri. "John Thain decided to pay year-end incentives in December, as opposed to their normal date in January. Bank of America was informed of his decision."
Report Says Thain Spent Over $1 Million To Redecorate Office
To make matters worse, Thain is now facing more criticism for reportedly spending $1.2 million to lavishly decorate his Merrill Lynch office early last year while the firm was fighting to survive.
Thain splurged on interior designs from the Obama's chosen White House decorator Michael Smith ($800,000), two area rugs ($131,000), two guest chairs ($87,000), a 19th Century credenza ($68,000), four pairs of curtains ($28,000), and a mahogany pedestal table ($25,000), according to Charlie Gasparino, the CNBC contributor and Daily Beast columnist who broke the story.
Other items mentioned: six dining room chairs ($37,000), a George IV Desk ($18,000), a custom coffee table ($16,000), a sofa ($15,000), a chandelier ($13,000), a mirror ($5,000), six wall sconces ($2,700).
Also reported to be on the list was a trash can for $1,400.
Bush again is taking the heat for the bailout. And he should, he supported it. But so did Obama and McCain, and Hillary.
This is flat out corruption. Hard working people lost their money in Merrill Lynch and this guy is paying out 3-4 BILLION dollars in bonuses? While the firm sinks and then accepts bailout money?
The remaining bailout money should be returned to the taxpayers and the 800+ billion dollar stimulus Obama is proposing should be defeated.
Enough of this. It isn't working and all it's going to accomplish is to get the country further into debt.
What a disgrace.