Chief executive of Merrill Lynch quits

Merrill Lynch & Co chief executive John Thain has resigned from Bank of America Corporation, the company said tonight.

The company gave no reason for Mr Thain’s departure, but it follows news that Merrill Lynch moved up its year-end bonuses, doling out cash just days before it was officially acquired by Bank of America on January 1.

A company spokesman issued a short statement saying: “Ken Lewis flew to New York today to talk to John Thain. And it was mutually agreed that his situation was not working out and he would resign.”

Mr Thain was heading a wealth management division of the two firms’ merged businesses. He went to Merrill Lynch after leading the New York Stock Exchange and before that, serving as chief operating officer at Goldman Sachs.

Merrill, which reported a $15.45bn (€11.8bn) fourth-quarter loss, was acquired by Bank of America in a government-brokered deal the same day the Lehman Brothers Holdings Inc collapsed.