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January 22, 2009

More on Merrill's Recently Departed

This just broke this morning, courtesy of intrepid CNBC reporter Charlie Gasparino. When you read it, I believe you will GASParino as well.

In early 2008, just as Merrill Lynch CEO John Thain was preparing to slash expenses, cut thousands of jobs and exit businesses to fix the ailing securities firm, he was also spending company money on himself, senior people at the firm say.

According to documents reviewed by The Daily Beast, Thain spent $1.22 million of company money to refurbish his office at Merrill Lynch headquarters in lower Manhattan. The biggest piece of the spending spree: $800,000 to hire famed celebrity designer Michael Smith, who is currently redesigning the White House for the Obama family for just $100,000.

The other big ticket items Thain purchased include: $87,000 for an area rug in Thain's conference room and another area rug for $44,000; a "mahogany pedestal table" for $25,000; a "19th Century Credenza" in Thain's office for $68,000; a sofa for $15,000; four pairs curtains for $28,000; a pair of guest chairs for $87,000; a "George IV Desk" for $18,000; 6 wall sconces for $2,700; six chairs in his private dining room for $37,000; a mirror in his private dining room for $5,000; a chandelier in the private dining room for $13,000; fabric for a "Roman Shade" for $11,000; a "custom coffee table" for $16,000; something called a "commode on legs" for $35,000; a "Regency Chairs" for $24,000; "40 yards of farbric for wall panels," for $5,000 and a "parchment waste can" for $1,400.

The documents also show that Thain signed off on the purchases personally. "Labor to relamp the six wall sconces" cost $3,000, and Thain authorized the payment of another $30,000 to pay the expenses Smith incurred in doing the work.




I guess if you've paid $35,000, you DON'T want to call it a "toilet". But it does beg the question ~ in this case ~ if the REAL shit was in or on that regal throne.

It was also noted during the Larry Kudlow/Gasparino/Becky Quick round table that Thain paid his DRIVER $230 GRAND a year. His driver.

How come I never get these gigs? They wouldn't even have to last any length of time

Posted by tree hugging sister at January 22, 2009 12:33 PM

Comments

Why do I keep hearing this odd echo that sounds vaguely like, "let them eat cake"?

Posted by: ricki at January 22, 2009 04:03 PM

Ricki, the source of that suggestion later lost her head. Just sayin', is all.

Posted by: JeffS at January 22, 2009 08:52 PM

FWIW, Marie Antoinette never actually said that, poor stupid girl.

But honestly, so what if Merill spent TARP funds on stuff like this? How is that NOT abiding by Congress's intent in giving/"lending" them the money? Merill paying people to provide goods and services most likely actually gets that money flowing through the economy FASTER than Merill lending it out to someone else.

Posted by: Dave J at January 25, 2009 08:06 AM