Consultant’s accountability …
an oxymoron?!

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? Let’s 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. That’s fine. Everybody has their price, and that was theirs. But don’t 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!

One thought on “Consultant’s accountability …
an oxymoron?!”

  1. The saga continues …

    REUTERS — 3:41 PM ET 01/22/09
    By Jonathan Stempel and Elinor Comlay

    NEW YORK (Reuters) – John Thain, former chief executive of Merrill Lynch & Co, has been ousted from Bank of America Corp after the bank discovered surprise losses at the brokerage it bought three weeks ago.

    Bank of America Chief Executive Kenneth Lewis expressed dismay last week about the scope of losses from mortgages and toxic debt on Merrill’s books. Investors and analysts said the losses made Thain’s position as head of global banking, securities and wealth management more tenuous.

    “Ken Lewis flew to New York today, met with John Thain, and it was mutually agreed that his situation was not working out, and he would resign,” Bank of America spokesman Robert Stickler said.

    The departure of Thain, 53, is effective immediately. He could not be reached for comment and Merrill was unavailable for comment.

    Bank of America stock slid 14.2 percent in afternoon trading.

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