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Posted on 01/25/2009 4:48:32 PM PST by rabscuttle385
BY GREG FARRELL and FRANCESCO GUERRARA
New York.
Bank of America played a role in Merrill Lynch’s controversial decision to pay $4bn in bonuses in December just as mounting losses were threatening to derail BofA’s takeover of the Wall Street firm, according to people close to the situation.
BofA has said that the payment of $4bn in compensation in a fourth quarter in which Merrill racked up $15bn in losses was sanctioned by John Thain, Merrill’s chief executive.
Ken Lewis, BofA’s embattled chief executive, ousted Mr Thain on Thursday after news of the bonus payments appeared in the Financial Times. BofA told the FT last week that Mr Thain had made the decision to pay bonuses in December instead of January and it had been “informed” of the move. The bank said Merrill was an independent company until the deal closed on January 1.
However, a person familiar with Mr Thain’s actions said the ousted chief had at least two conversations with BofA’s chief administrative officer, J. Steele Alphin, one of the bank’s most senior executives, before a December 8 board meeting at which Merrill’s bonus payments were approved.
This person said Mr Alphin recommended, and Mr Thain accepted, a proposal to change Merrill’s incentive compensation mix – 60 per cent cash and 40 per cent stock – to conform with BofA’s system of 70 per cent cash and 30 per cent stock. The stock portion of the payouts was made January 2, the day after the deal closed, in BofA stock.
(Excerpt) Read more at ft.com ...
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What’s the truth, who knows we have a real pig fest of bankers in this country and we new to start the bar-b-que soon!
Ken Lewis and Bank America love illegal aliens and my guess is many Ban of Am credits cards and loans have plasma TVs, pickup trucks and lots of goodies heading south of the border.
The guy who should be in shackle is Stan O’Neil who destroyed Merrill. Sadly Stan like Franklin Raines who helped destroy Fannie Mae are African American so holding them accountable is racist. O’BNeil destroyed Merrill. Raines wrecked Fannie with lots of help from Obama cronies who also wrecked Freddie.
ah, but like richard rubin, they’ve got their multi-millions.
Throw all those vipers in J A I L.
“You are a den of vipers. I intend to rout you out and by the Eternal God I will rout you out. If the people only understood the rank injustice of our money and banking system, there would be a revolution before morning.” —Andrew Jackson, 1828 (to a group of investment bankers trying to persuade him to renew their central bank charter)
lewis is out.
Screw 'em.
I hate Bank of Illegal Aliens and Anti-America.
I had someone from them cold call trying to sell me business services and I told them I would NEVER do business with Bank America aka the pro-illegal alien bank.
I hope CEO ken lewis gets fired.
These guys are guilty of conspiracy to loot the company at the taxpayers expense.
Can they just go to jail.
I’m not holding my breath.
It’s starting to look like Thain’s a good man. BOA’s looking bad.
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