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New Bank Of America CEO Quits

Associated Press file photo (2008)

Then-Merrill Lynch Chairman and CEO John Thain, left, smiles as Bank of America Chairman and CEO Ken Lewis, speaks at a news conference in September.

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The Associated Press

Published: January 24, 2009

NEW YORK - Wall Street bonuses apparently have cost former Merrill Lynch & Co. Chief Executive John Thain his new job at Bank of America Corp.

Thain resigned from Bank of America on Thursday after news broke that Merrill Lynch had rushed out its year-end bonuses, paying them just before Bank of America completed its acquisition of Merrill Lynch and sought $20 billion in additional government bailout money.

The company gave no reason for Thain's departure, but its timing, coming hours after news reports about the bonuses, made it appear the payouts were a factor.

The bonuses to Merrill Lynch executives were paid as the company prepared to report a $15.3 billion fourth-quarter loss - a loss that led Bank of America to request and receive government money on top of the $25 billion it already had been given.

The Associated Press

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