The Thain of Wall Street: “Let ‘em eat cake”
Daylife/Reuters Pictures
Merrill Lynch paid billions of dollars of bonuses to its employees, three days before completing its life-saving sale to Bank of America, reports the Financial Times.
The money was paid as Merrill’s losses were mounting, forcing Bank of America CEO Kenneth Lewis last month to seek additional government support for the deal. Merrill’s compensation committee agreed to pay bonuses on December 29, at least one month earlier than usual, the paper said.
Bank of America said Merrill had a $21.5 billion operating loss in the fourth quarter. Despite the massive losses, Merrill set aside $15 billion for 2008 compensation, 6% lower than a year earlier. About $3 billion to $4 billion of that compensation were annual bonuses.
And then there’s the egregious fop who ran this castle, John Thain:
John Thain spent $1.22 million of Merrill’s money to refurbish his office. Thain’s largest expense was the hiring of celebrity designer Michael Smith for $800,000. This is the same guy who is currently redesigning the White House for the Obama family for only $100,000. Thain had Merrill pay that designer $700,000 more for the redesign of only his office. Again, are you kidding me?
Persian Area Rug =$87,000
Egyptian Silk Curtains =$28,000
Mink Guest Chairs =$87,000
Roman Shade Fabric =$11,000
Mahogany Pedestal Table =$25,000
19th Century Credenza =$68,000
Hand-Stitched Polynesian Sofa =$28,000
George IV Desk =$18,000
Wall Sconces =$2,700
6 Antique Chairs =$37,000
Private Dining Room Mirror =$5,000
Dining Room Chandelier =$13,000
Commode On Legs =$35,000
Regency Chairs =$24,000
40 yards of Fabric For Wall Panels =$5,000
Parchment Waste Can =$1,400
Additional designer Expenses =$30,000
Firing John Thain =Priceless
Finally, in addition to the above ridiculous numbers, documents show Merrill paid $230,000 for Thain’s personal driver for one year’s work, which included the driver’s $85,000 salary and bonus of $18,000, and another $128,000 in over-time pay.
Assign someone at the Department of Justice to determine how to get a refund from these sleazebags.
On the very day Bush’s financial ‘guru’ said he needed 700 billion dollars to hand over to his friends, with no strings attached, just prior to the Republicans leaving office, I considered this ‘financial crisis’ and the subsequent bailouts to be the biggest scam in the history of the world.
One day everything was fine and the next day the financial world came to an end. Why? Pure generated panic!
I do think the Republicans only meant to empty the cupboard, prior to the Democrats taking over and to be fair, I wouldn’t put it past the Democrats to do exactly the same thing. Anyway, their friends are also benefiting from this ‘crisis’, as they willingly aid and abet this crime.
Nothing I’ve seen since and no explanation I’ve heard since has changed my mind about what caused this mess.
True, I think the extent of the panic and the ensuing worldwide crisis took them all by surprise but I still believe initially, this whole mess was deliberate.
This story further confirms my suspicions. They all ought to be in jail, not just this asshole.
Cinaedh
January 23, 2009 at 11:00 am
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Chris
January 27, 2009 at 6:07 am