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 Merrill. BofA has said that the payment of $4bn in bonuses, in a quarter in which Merrill racked up $15bn in losses, was sanctioned by John Thain, Merrill’s chief executive. Ken Lewis, BofA’s embattled CEO, ousted Thain on Thursday, a day after the FT reported news of the bonus payments. BofA told the FT last week it was notified of Thain’s decision to pay bonuses in December instead of January, adding that Merrill was independent until the deal closed Jan 1. Full FT analysis of Thain’s downfall here.

This entry was posted by Gwen Robinson on Monday, January 26th, 2009 at 5:50 and is filed under Capital markets, People. Tagged with BofA, john thain. Edit this entry.