Merrill Lynch Robs the Taxpayer

Good Evening All

I hope everyone had a nice evening! Well, the fraud continues folks. If this isn't pure stealing at the expense of the taxpayer than I don't know what is:

"Merrill Lynch took the unusual step of accelerating bonus payments by a month last year, doling out billions of dollars to employees just three days before the closing of its sale to Bank of America.

The timing is notable because the money was paid as Merrill’s losses were mounting and Ken Lewis, BofA’s chief executive, was seeking additional funds from the government’s troubled asset recovery programme to help close the deal.

Merrill and BofA shareholders voted to approve the takeover on December 5. Three days later, Merrill’s compensation committee approved the bonuses, which were paid on December 29. In past years, Merrill had paid bonuses later – usually late January or early February, according to company officials.

Within days of the compensation committee meeting, BofA officials said they became aware that Merrill’s fourth-quarter losses would be greater than expected and began talks with the US Treasury on securing additional Tarp money.

Last week, BofA said it would be receiving $20bn in Tarp money, in addition to the $25bn that had been earmarked for it and Merrill last year. It was then revealed that Merrill had suffered a $21.5bn operating loss in the fourth quarter.

Despite the magnitude of the losses, Merrill had set aside $15bn for 2008 compensation, a sum that was only 6 per cent lower than the total in 2007, when the investment bank’s losses were smaller.

The bulk of $15bn in compensation was paid out as salary and benefits throughout the course of the year. A person familiar with the matter estimated that about $3bn to $4bn was paid out in bonuses in December.

Nancy Bush, an analyst with NAB Research, described the size of the 2008 Merrill bonus payments as “ridiculous”.

BofA said: “Merrill Lynch was an independent company until January 1 2009. John Thain (Merrill’s chief executive) decided to pay year-end incentives in December as opposed to their normal date in January. BofA was informed of his decision.”

BofA declined to specify when Mr Thain informed the bank of his decision.
A source familiar with the matter says Mr Thain, in the weeks leading up to the December 8 compensation committee meeting, had been weighing the possibility of requesting a bonus of at least $10m for himself before ultimately deciding against such a move."

Quick Take:

I don't know where to begin. If this act of greed doesn't infuriate you then I don't know what will. Please take note that Mighty Merrill lost $21.5 billion during the 4th quarter when they decided to reward themselves with billions in compensation a month earlier than usual. This is pure stealing folks. 3 days later they sold out to BofA.

How convenient Merrill. I am telling you folks the bankers are out of control. This kinda crap must be stopped immediately or no one will ever trust any financial company ever again. Can you imagine if you or I did such a thing? We would most likely be sued or put in jail if we attempted something so fraudulent. Merrill might as well have come to my house, grabbed my wallet, and taken the money themselves.

Why do these criminals get a free pass? Whats it going to take before our government takes a stand and says enough already?

Bottom Line:

The greed and fraud that occurred over the past several years is unprecedented. Its going to take years for us to heal from these wounds. Why are the rich continuously allowed to steal from the poor? This is Robin Hood in reverse!

Its time for our government representatives to look out for their constituencies and say no to this criminal behaviour!

I want to vomit when I read something like this.

Allowing Merrill to reward themselves with billions of dollars in bonuses a month early on purpose after losing over $20 billion in one quarter is just plain sickening.

We are left to pay the tab America. Where does it end?