Yesterday’s news that Merrill Lynch executive John Thain is out at BAC is, well, yesterday’s news.  Ken Lewis wanted Thain out, presumbably because he was upset about that undisclosed $15.5 billion in losses.  He might also been angry about the $1.2 million office, with the $35,000 commode.  We will never know for sure, because it was a meeting behind closed doors. 

There was some pretty clear information available that Merrill Lynch was full of toxic assets.  One is that the firm’s Salt Lake City unit, Merrill Lynch Bank, had a Texas Ratio of 93.  Any bank that has a Texas ratio of 100 is pretty much expected to fail, according to historical trends.  The Texas Ratio was (more…)

Ken Lewis is angry, and John Thain is on the way out at Bank of America.  Not much makes sense in banking these days, but this is a decision that should sit well with the frustrated shareholders at BAC.  Will those shareholders be satisfied with Thain’s job?  Henry Blodgett suggests that the board needs to ask for Ken Lewis’ job next.  After all, Lewis signed off on the deal. Ultimately, when $15 billion in additional losses appeared on (more…)