What’s the buzz?
Big news on Wall Street! It’s the Bank of America financial drama. Here we go again! It’s Bank of America and Merrill Lynch. Now, let me present you the characters of this latest financial drama so you’d have a better appreciation of what’s going on.
Actors in this drama
Who is John Thain? He was the former CEO of Merrill Lynch. He would become the President of Global Banking, Securities and Wealth Management in the new combined company, following the merger between Merrill Lynch and Bank of America.
Who is Ken Lewis? He is the Chairman and CEO of Bank of America
What happened?
John Thain “resigned” from Bank of America today. No reason was given. You know how that works! But today’s reports have it 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. On top of this, the company is preparing a report of about $15.3 billion fourth-quarter loss — a loss that led Bank of America to request and receive government funds on top of the $25 billion it had already been given. Ouch!
Can you imagine this? The government bails them out, next thing you know, they are handing out year-end bonuses for a losing company! Makes me wonder.
Blame game
Ken Lewis, the CEO is blaming John Thain for the all these troubles at Bank of America. The $15 billion loss, the bailout-funded bonuses. But who really is ultimately responsible? Is it the President or the CEO?
Was Ken Lewis the CEO and the ultimate person to sign the merger between Merrill Lynch and Bank of America forced into this decision by John Thain? I am also wondering if Bank of America was forced to approve the $15 billion in bail-out funded bonuses Merrill just paid to its workforce. Gosh!!!
Ken Lewis has the final word
The way I look at it is that – John Thain isn’t responsible for those decisions. Ken Lewis is.
Now, I wonder what the Board of Directors is thinking now?
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{ 8 comments… read them below or add one }
aba, hindi lang pala mga pulitiko natin ang may monopolyo sa kakapalan ng mukha!
Dinah´s last blog post..Transcript of President Barack Obama’s Inaugural Address
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reynz Reply:
January 23rd, 2009 at 4:24 am
hay naku! nagkalat ang mga buwaya sa mundo! they come in different colors! leche talaga!
reynz´s last blog post..My Obama. Your Obama. Our Obama.
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dami nga talagang buwaya, kahit dito disiyerto meron din mga buwaya
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reynz Reply:
January 23rd, 2009 at 12:55 pm
leche kamo nang mga buwayang to! eh sa kanila nag-simula ang lecheng world financial crisis sa mga ka-ganidan nila, taz eto pa ang gagawin? eh pera na namen yang na-bail-out sila. uber!
reynz´s last blog post..My Obama. Your Obama. Our Obama.
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Malalaki lang ang ego ng mga manyabang na bankers and chorva sa Wall St. Sige nga, yung mga economic eklavu nila, gamitin nila ngayon. Tapos ngayon mamalimos sila ng bailout money from the American people. Todo na ang kapal ng mukha nila talaga.
Kaya nga yung bailout hindi nasunod, yung pera ay hindi nagasta ng maayos. Dapat nga hindi na dapat i-bailout ang mga yan para matuto sila – matuto silang magtanim ng camote…(ay, wala palang kamote doon…hehehe)
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reynz Reply:
January 23rd, 2009 at 12:58 pm
I did not like that bailout kahit na yung ina-nounce ni Bush noon. Binasa ko at lecheng laman. They were giiving tax breaks sa owner nang car racing, kabayo. Me tax breaks yong palm oil yata yon – basta yong mga walang kinalaman sa kalechehan yon ang binigyan anng tax break Yong mga homeowners na nawalan nang mga bahay – sila ang pinabayaan. Ewan. Sana nabato ko rin nang sapatos ang mga bugok na yan. Hmpt.
reynz´s last blog post..My Obama. Your Obama. Our Obama.
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Silver Reply:
January 23rd, 2009 at 1:49 pm
Mahal na reyna,
Dapat hindi lang sapatos ibato sa mga kumag na yan…
KAMOTE na lang…para matigas at magka-bukol sila..Ampf!
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reynz Reply:
January 24th, 2009 at 3:35 am
patatas na lang. marami dito. hindi yong chips ha? hahaha
reynz´s last blog post..My Obama. Your Obama. Our Obama.
grabe naman ang nangyayari sa financial sector sa america..heto na ba talaga ang simula ng crisis??? pero bakit ganun, nag-bailout bago mag-merger…hindi ba panlalamang yan??? *roll eyes*
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reynz Reply:
January 23rd, 2009 at 1:08 pm
iisa lang ang word ko sa mga yan. kaya ngayon, i look at investments in a completely rolling eyes different way. lalo na yang mga lecheng pre-need eklavu na yan.
reynz´s last blog post..My Obama. Your Obama. Our Obama.
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basta ang warning at payo ko sa lahat, make your own coffee, kasi mahaba ang pila sa Starbucks at Peets coffee dahil nagbawas sila ng empleyado
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reynz Reply:
January 24th, 2009 at 3:34 am
dito nga yong ultimong dunkin donuts na pinupuntahan ko, taka ako, tinamaan din ata dahil nangawala yong mga dating nag-tatrabaho dun
reynz´s last blog post..My Obama. Your Obama. Our Obama.
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lcm Reply:
January 24th, 2009 at 4:16 pm
bili tayo ng thermos made in china, para palagi tayong me coffee, yong isang doctor sa Kaiser papasok daw siya kahit meron siyang sakit kasi baka daw maglayoff din since maraming walang insurance dahil nagclose ang businesses, eh di wala ding nakainsured, so siempre magbabawas ang Kaiser ng doctor kung walang pasyente
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kala ko ung mga buwaya eh ung mga nagkalat na traffic aids/MMDA dyan sa edsa….
sa US pala meron din…naka japorms pa ha!
ruthie´s last blog post..what i really want
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reynz Reply:
January 24th, 2009 at 3:33 am
naka! sila kamo tong gumawa nang kung ano anong kabulastugan kaya laki nang problema nang mundo
reynz´s last blog post..My Obama. Your Obama. Our Obama.
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doj Reply:
January 24th, 2009 at 6:24 am
“naka japorms pa ha” – LOL!
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I think the case was, di dinisclose ng Merrill yung bonuses at other losses nila sa BofA. Kaya nag ‘resign’ si Thain. More likely, di talaga alam ni Lewis or BofA yung bonuses, kasi kung alam nila, di sila papayag. Sobra kasing against sa interest ng BofA yun. Dagdag mo pa yung losses na di sinabi sa BofA bago yung merger, ang labas talaga, in bad faith ang Merrill. The fact pa lang na nagpa bonus pa sila despite failing, sobrang bad faith/self-interest on their part! Kawawa ang clients.
doj´s last blog post..Sugarsweet
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reynz Reply:
January 27th, 2009 at 5:37 pm
was not diclosed? wow! if that was the case, then am sure, kahit na ako magagalit ako nang todo, so pinaginitan nya si Thain kung ganun?
reynz´s last blog post..Royal Blog Santacruzan 01/24/2009 Presents: Recession
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That is the part that disgusts me. I’m all for the government stepping in and helping a company to avoid an economic disaster (major job losses, etc), but I don’t think that these companies should be giving out any bonuses at all. Maybe we don’t know something, though. Maybe it was in this guy’s contract, and so BoA didn’t have a choice.
Maximista´s last blog post..Electric company limits man’s electricity, then he freezes to death
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reynz Reply:
January 27th, 2009 at 5:36 pm
i know! can you imagine? and who ultimately pays out from all these bail outs? we pay them because those monies intended for us have already been loaned out to them,. in exchange? we get bad receivables and dead investment certificates. isn’t it annoying when you learn stuff like this? quite unbelievable why the gov’t still bails them out.
reynz´s last blog post..Royal Blog Santacruzan 01/24/2009 Presents: Recession
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