Cuomo subpoenas Merrill's Thain on bonus payments

New York's attorney general wants to talk to former Merrill Lynch & Co. chief John Thain about the bonuses he approved for Merrill employees in December.

From Bloomberg News:

New York Atty. Gen. Andrew Cuomo subpoenaed former Merrill Lynch & Co. head John Thain and Bank of America Corp. Chief Administrative Officer J. Steele Alphin to testify about executive bonuses paid by Merrill just before its takeover by Bank of America.

The subpoenas are part of an investigation into the billions of dollars in bonuses paid by Merrill late last year, Cuomo said today in a statement.

"The fact that Merrill Lynch appears to have moved up the timetable to pay bonuses before its merger with Bank of America is troubling to say the least and warrants further investigation," Cuomo said in the e-mailed statement.

Thain was ousted by BofA last week, after Merrill suffered a $15-billion fourth quarter loss and the bank was forced to seek another capital infusion from the government.

BofA took control of Merrill on Jan. 1. Before the merger was consummated, Thain sped up annual bonus payments so that employees got them in December rather than early this year.

Thain on Monday said the size and timing of the bonus payments "were all determined together with Bank of America."

BofA said Thain and Merrill made the bonus decisions and that the bank had no legal right to challenge them, because Merrill was independent until Jan. 1. But the Financial Times reported on Sunday that Alphin had had conversations with Thain about the bonus timetable.

-- Tom Petruno

Photo: Andrew Cuomo. Credit: Jin Lee / Bloomberg News

Comments

[S]

Recover the dough, all of it.

Enact a significant penalty for the doing the deed.

Slap BoA too, if you can prove they knew.

This needs to be done a few other places too?

I doubt Merrill Lynch is alone.

[NV]

memo to Andrew Cuomo: keep up the good job, and when elected to governor of new york state be sure to leave aside the monkey business. If in doubt of what I'm talking about see the previous governor and his penchant for hot young girls

[thomas One]

Good work AG Cuomo

i lost most of my savings about $700,000 with Merill Lynch .
it was to be safe risk free -the merilll shares were sold as bonds
and i was also sold Freddie just before collapse. The broker
avoids me now - so much for Merrill Lynch Unlimited Advantage The toatl Merrill even the term financial advisor. There is no doubt that Merrill has abandoned their responsibilities to me. I woudl have lost an additional $120,000 DP Utility had AG Cuomo not acted and forced Merrill to refund.
While AG Cuomo has done the best job in tracking these theives the SEC is outrageous in how they allowed Wall Street to run amok. The SEC needs also to be held accountability. The Bailout should have some provision for those who have beem screwed especially with government complicitiy.
Example Freddie - I lost 92% there govemrent so they say, but only implied.
but goverment allowed these securirties to be sold as if backed by Uncle SAm. I hope Cumo goes after individuals in these companies; it seems going after the companies weakens again the shareholders and weakens the eniter system. TIME TO LEVY FINES IN THE MILLIONS AGAINST THOSE ILLL GOTTEN GAINS. The SEC has the power to fine why not do so and heavily.
better than their asses in jail.

they need to get settlements from all those you got the bonuses. As for retention bonus's what a load of shi* There should be a customer retention program.

As Bush stated Wall Street got drunk - so let them pay INDIVIDUALLY for the carnage. The dont care about their companies.

any issue - shareholders need more rights- such as a web site with issues.
All i ever get to vote on is the slate of directors who i never heard of, or the auditors.