Fascinating … sort of … during the last quarter of 2008, Merrill Lynch lost (again) $15 billion out of the pocket of Bank of America shareholders and US taxpayers … CNN Money: BofA: $20B bailout, huge Merrill loss.
As you might recall, Bank of America bought ailing Merrill Lynch in the fall of 2008. The “consultants” advising Bank of America on the wisdom of the deal from the shareholders perspective, Fox-Pitt Kelton and J.C. Flowers & Co., took a small fee … of $20,000,000 … for that professional (dis)service.
$20 million bucks for how many hours of work do you think that represented? Lets be generous and say 1000, spread out over a lot of people. That means the firms were being paid $20,000 per hour for their work. Thats fine. Everybody has their price, and that was theirs. But dont you think somebody should get a rebate? Do consultants ever give those? Perhaps not. Anyway, why should they? They did what was required of them, after all, what is always required of such folks.
They told management what it wanted to hear.
Fascinated … sort of ?! Read more about it here: The Bing Blog: Consultants and accountability: an oxymoron? … and watch this in-depth analysis here: CNN Video: BofA’s ‘shotgun wedding’ regret. Not funny … eh!