Thain Quits Bank of America
NEW YORK -- John Thain, former chief executive of Merrill Lynch & Co, has resigned from Bank of America Corp, just three weeks after the companies merged, The Wall Street Journal and CNBC television said.
Bank of America spokesman Scott Silvestri declined to comment.
Thain's departure as head of global banking, securities and wealth management came less than a week after Bank of America took $20 billion of government capital to help absorb Merrill, whose soaring losses upset Kenneth Lewis, Bank of America's chief executive.
The government also agreed to share in losses on $118 billion of debt, and Lewis' own job status has come under question as Bank of America shares have tumbled..
"This is a huge crisis of credibility," said David Dietze, chief investment officer at Point View Financial Services in Summit, New Jersey. "Someone has to fall on a sword."
Tom Montag, another former Merrill executive who took over Bank of America's sales, trading and research operations, is also leaving, CNBC said.
Other former Merrill executives who left previously include Robert McCann, who was to lead the combined brokerage, and investment banking chief Greg Fleming.
Bank of America shares were down $1.15, or 17.2 percent, at $5.53 in midday trading on the New York Stock Exchange.
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