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.




  1. Poor Investor says:

    Sleazebags is correct
    Is more than amazing and then to see the list 0 $ 1400 (US) for a waste paper basket
    And we expect these people to invest money
    No more ( or much less) than drunken sailors
    Then again why do most brokerage houses have hyphenated names – because when the economy tanks with a regular expected business cycle they all scurry around merging as a means of getting out of any business expenses , debts and obligations
    They should all have their assets seized and be placed in the lowest end possible prison for ever

  2. god says:

    Seems to me the last queenie who said “Let ’em eat cake” ended up with a severe laceration to the lovely bit that connected her head to torso.

    Maybe – just next to that famous bronze bull on Wall Street – someone should park a guillotine as reminder.

  3. Angel H. Wong says:

    #2

    But the guillotine will be used only for the scapegoats and not the real culprits.

  4. Paddy-O says:

    Eideard pleaded, “Assign someone at the Department of Justice to determine how to get a refund from these sleazebags.”

    ROFL!!!

    Maybe the pay to pardon AG will handle it?

    Anyway, don’t worry. Omama is about to shower the banks with the other 1/2 of the money promised.

    Change we can believe in!

  5. MPL says:

    #4
    It already done, with some hot button attention diversions like some staff salary freezes or abortion financing.

    Problem is still there and question still stands what now ?

  6. Paddy-O says:

    # 5 MPL said, “Problem is still there and question still stands what now ?”

    The SANE response to this would be to quit while behind and stop and any future foolish “stimulus, bailout” nonsense.

    Let’s see if the Obama Admin is sane, or insane…

  7. Tomas says:

    #6. PattiOgasm- This story is not about Obama, but it doesnt surprise me that you would try to turn it that way. You really are a sad piece of shit.

    BTW, I didnt vote for Obama, and your still a sad piece of shit.

  8. Jopa says:

    The scale of these peoples corruption is unimaginable. They are the worst pigs in human history. I cannot fathom how a human being can set 15$B for bonuses DAYS before their company is sold using tax payers money to another bank in order to SAVE it.

    I cannot understand how a CEO can “redesign” his office for 800,000 USD. If I where a share holder in his company I would hang him by the balls and let dogs eat him alive.

    I hope someone lynch them to death.
    These are not human beings, these are monsters of the worst kind.

  9. Paddy-O says:

    # 7 Tomas said, “This story is not about Obama,”

    Really? Omama didn’t vote for this and lobby his party to pass it? He hasn’t asked for more of the same for the banks?

    Have you lived in a bunker without contact with the outside world since October?

  10. Gary, the dangerous infidel says:

    Paddy-O wrote “The SANE response to this would be to quit while behind and stop and any future foolish ‘stimulus, bailout’ nonsense.”

    You may THINK that’s sane, but there’s going to be a whole lot of insanity when Citibank, Bank of America, and Wells Fargo all fail. Another caveat is that the insanity will spread worldwide almost instantly.

    We’re still falling off a cliff, but in slow motion we have the opportunity to look around for a branch or something to grab onto to break our fall. Collapse isn’t necessarily inevitable, and the bailouts give us time to think and make changes that can turn things around.

    On the other hand, your idea of the sane response virtually guarantees a sudden and very harsh shock to our economic and political system, and it will not survive intact. Changes that severe also have unintended consequences that cannot be predicted, and often cannot be undone.

  11. Paddy-O says:

    # 10 Gary, the dangerous infidel said, “You may THINK that’s sane, but there’s going to be a whole lot of insanity when Citibank, Bank of America, and Wells Fargo all fail. ”

    They should be allowed to fail. The Fed should be abolished. The U.S. needs a workable banking system. The reason we’re here is because we don’t have one.

  12. rzwo says:

    Didn’t know Egypt had silkworms. Then again I didn’t know Corinthians had leather. Somewhere Ricardo Montalban is smiling.

  13. Jopa says:

    #9 – I am not sure Obama or the rest of the politicians knew that this is what these scums were doing…
    Remember that there was immense pressure to act quickly.

  14. Paddy-O says:

    # 13 Jopa said, “I am not sure Obama or the rest of the politicians knew that this is what these scums were doing…
    Remember that there was immense pressure to act quickly.”

    That’s why only people of good judgment should be trusted with spending billions of our dollars.

    It has now been proven beyond ANY doubt that they lack the judgment required to hold the positions they hold…

  15. Dave W says:

    Anyone who paid $1,400 for a waste paper basket is obviously insane, even if they came by the money legitimately. Too bad Bedlam isn’t around anymore. We’ll have to settle for Sing Sing.

  16. Gary, the dangerous infidel says:

    #11 Paddy-O, the Fed provides one important thing when it’s done correctly — a firm and steady hand on monetary policy consistent with goals of gradual growth of the national economy.

    Right now, it may look like the Fed has failed us miserably, but abolishing the Fed may merely result in private bankers conspiring in secret to coordinate actions under policies less conducive to the public good, and certainly in a much less accountable manner.

    If you think that private bankers have the public interests at heart, take another look at Mr. John Thain and his recent actions.

  17. Paddy-O says:

    # 16 Gary, the dangerous infidel said, on January 23rd, 2009 at 12:57 pm

    “#11 Paddy-O, the Fed provides one important thing when it’s done correctly — a firm and steady hand on monetary policy consistent with goals of gradual growth of the national economy.”

    Done & done: “If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered…I believe that banking institutions are more dangerous to our liberties than standing armies… The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”

    Jefferson, Wilson & others in the 19th century ACCURATELY predicted the outcome of the Fed.

  18. ECA says:

    And to think..
    the guy down the block, gets 20 years for robbing a 7/11..
    these guys take BILLIONS, and MIGHT get 5 years in a Luxury Prison…

  19. Ron Larson says:

    His driver made $230k a year! Damn! I want that job.

    I think he driver was being paid to keep his mouth shut about where his boss went and to whom he saw. Hint, Hint, a mistress.

  20. Mr. Fusion says:

    #17, Cow-Paddy, Ignorant Shit Talking Sociopath, Retired Mall Rent-A-Cop, Pretend Constitutional Scholar, Fake California Labor Law Expert, Pseudo Military Historian, Phony Climate Scientist, and Real Leading Troll Extraordinare,

    The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”

    As has been done with the Federal Reserve. The people control the FED. The problem here, as has been discussed several times already, is the lack of oversight allowed the banks to get crazy. That squarely belongs in your hero, Bushes lap.

  21. Paddy-O says:

    # 21 Mr. Fusion said, “As has been done with the Federal Reserve. The people control the FED.”

    Umm, no they don’t. The Congress has NO control on how much currency the Fed issues. NONE.

    Have you noticed that in recent years they even stopped reporting the M1?

  22. Pat M says:

    Paddy-O,

    I’ve been reading these posts for awhile now. You really are a troll. Can’t you come up with any thing halfway intelligent?

  23. Paddy-O says:

    # 23 Pat M said, “Paddy-O”

    Hi sock puppet troll! How are ya?

  24. Breetai says:

    Wow People here sure got their heads in the sand thinking government is actually gonna look out for the little guy.

  25. amodedoma says:

    These guys aren’t criminals, they’re traitors, they’re a threat to national security and deserve summary executions.

  26. Paddy-O says:

    # 26 amodedoma said, “These guys aren’t criminals, they’re traitors, they’re a threat to national security and deserve summary executions.”

    Who? The politicians who continue the corrupt banking system, or the bankers? Or, both?

  27. amodedoma says:

    Politicians are always corrupt, doesn’t matter how many times you change them they all come up rotten, but we can’t do without them. These ‘bankers’ are expendable, useful only to serve as an example and a detterent. From what I know of this story (I’m no washington insider) The bankers used the lobbyists to manipulate the corrupt tendencies inherent in all politicians, to get legislation passed to deregulate. And this way pluck the chicken clean so to speak.
    Hangin’s too good for ’em!

  28. Gary, the dangerous infidel says:

    Too many people in high places seem to think that if something isn’t illegal, it isn’t wrong. I hope Thain ends up flat broke by spending all his ill-gotten gains on security systems and bodyguards to keep him safe from the people he has impoverished.

  29. AdmFubar says:

    lets see 1.2 million, divided by $4,800 (cost of my crappy health insurance and i cant afford, per year) = 250 years worth of coverage..

    now what is wrong with this?

  30. wiglebot says:

    Wall Street has turned into a an incestuous pit of crooks and fools.


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