Merril’s O’Neal May Step Down Today. O’Neal’s stepping down a week after Merrill reported the biggest loss in the firm’s 93-year history.
This is an atrocity, how can anyone receive
this much compensation for screwing up!!!!
Losing a lot of money for shareholders is the surest way to end a career on Wall Street, as Merrill Lynch Stan O’Neal found out this month after the embattled chief executive officer delivered the worst news in the firm’s 93-year history.
The third-quarter loss of $2.24 billion, or $2.82 a share, was about six times more than O’Neal acknowledged on October 5 and derived from $8.4 billion of writedowns for the subprime mortgages, asset backed bonds and loans gone bad under his watch.
Merrill’s result, coming during a credit market shakeout that triggered a run on a British bank and caused Switzerland’s largest financial institution to fire its CEO, was the biggest quarterly debacle in the history of the securities industry.
That was enough for the 11-person board, nine of whom were handpicked by O’Neal during his five years as CEO, to make it clear the 56 year could leave possibly as early as today, according to a person with knowledge of the directors’ discussions.
|
If you like what you
read, subscribe to our
daily email alerts |
Tags: Mortgage Backed Securities, Mortgage Defaults, Mortgage Implosion, Mortgage Layoffs, Mortgage News, Subprime Implosion, Subprime Mortgage Industry
