Merrill paid bonuses early as BofA deal closed

[marketcrazy1]

Merrill paid bonuses early as BofA deal closed- FT
Wed Jan 21, 2009 10:27pm EST

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NEW YORK, Jan 21 (Reuters) - Merrill Lynch paid billions of dollars of bonuses to its employees, three days before completing its life-saving sale to Bank of America Corp (BAC.N), the Financial Times reported on its website on Wednesday.

The money was paid as Merrill's losses were mounting, forcing Bank of America Chief Executive 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.

Yet within days of that committee meeting, the FT said, BofA officials became aware Merrill's fourth-quarter losses would be much greater than expected.

Bank of America, in a statement, told the paper, "Merrill Lynch was an independent company until Jan 1. (Merrill CEO) John Thain decided to pay year-end incentives in December as opposed to their normal date in January. BofA was informed of his decision."

Last week, Bank of America said it would receive $20 billion in U.S. Treasury investment on top of $25 billion earmarked last fall for a combined BofA-Merrill.

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 percent lower than a year earlier.

A person familiar with the matter told the FT about $3 billion to $4 billion of that compensation were annual bonuses. The bulk is comprised by salaries and benefits. (Reporting by Joseph A. Giannone; Editing by Anshuman Daga)

© Thomson Reuters 2009 All rights reserved http://www.reuters.com/article/marketsNews/idESN2150757420090122?rpc=44 --- WHY AM I NOT SHOCKED!! note to bankers: TAXPAYERS DO NOT CARE HOW MUCH YOU STEAL! ( apparently )

[GoesTo11]

1. Just arrest these bastards and take back the money

I know, they say once it's been distributed, it's gone. But take it back. It's just stolen property.

[leftofthedial]

2. these bastards are thieves.

just like the guy in the ski mask at the liquor store.

throw their asses in prison. Pronto.

[girl gone mad]

3. Sick, sick, sick.

Can we bring back the guillotine, yet?

[tomp]

4. the people who gave them our money are complicit (including obama). nt

[marketcrazy1]

5. Ex-Merrill CEO Thain to Leave Bank of America, CNBC Says

http://www.bloomberg.com/apps/news?pid=20601087&sid=aMOaJ6cAIJh0&refer=home --- now they should sue him for fraud and claw back his bonus!

[Joiwind]

6. 15B/300M = $50 apiece

How about if I go out to the CEO's house and take my family's share, $200, in silverware or bed coverings?

Sounds like a plan to me.

Or if 40 of us take his yacht out for a day of deep-sea fishing?