January 23, 2009

BofA and Deal Making

When I decided to sell BofA because it acquired Merill Lynch, I anticipated some of the culture and tough integration issues. However I did not expect any of what have transpired so far.

I expected the flight of Merill's leadership coupled with complete incompetence of managing their exposure to risky assets, but what was shocking is Merill's executives accelerated bonus payments and hiding their losses. That is like pulling a fast one on BofA and the US tax payers. John Thain has ruined his career and in my opinion should be sued.

BofA will take it a long time to get this one right.

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