Corporate Secretary

COMMENT: No bye, no aloha

John Thain, Bank of America’s former president of global banking and global wealth investment management and the ex-CEO of Merrill Lynch, resigned last week. Though there were many reasons, one of the key ones was Bank of America CEO Kenneth Lewis' purported unhappiness with the fact that, during the merger with Bank of America, it was a transition team that reported Merrill’s fourth-quarter losses, not Thain.

Oh, and Thain asking for a $10 mn bonus in the face of financial tremors didn’t help much. Then there was that untimely December vacation in Vail, Colorado, where he worked amid the ski slopes while the bank struggled under major financial losses. Should the former NYSE CEO still be interested, he’ll have some time freed up to take another trip the bank warned him against, to Davos, Switzerland, which hosts the World Economic Forum now through February 1.

If he does show up, it will certainly be a whirlwind of ‘this could’ve worked in hindsight’ moments for Thain, where he’ll receive all sorts of ill-timed bonuses that could even include tips on how to save beleaguered banks.

By Janine Armin
Associate editor
Corporate Secretary

COMMENT: Madoff and the Trojan Horse

Even though the holidays are a time for giving, Bernard Madoff’s sons did not appreciate the approximately $1 million worth of jewelry he sent to their Florida homes. Instead, the rebellious offspring notified their lawyers. And Madoff, architect of the elaborate ‘Ponzi scheme’ defrauding investors out of a possible $50 billion, was promptly accused of trying to make off with assets the SEC had only just frozen.

You’re probably thinking, where’s the drama in that? But the nepotism goes deep in this one. David Kotz, the SEC's inspector general, is investigating a possible lack of regulatory oversight at Madoff Securities in connection with the fact that Madoff's niece, a compliance officer at the firm, married a former SEC examinations official.

Later this week the Securities Investor Protection Corp and the SEC will discuss the process for reimbursing Madoff’s customers. So regardless of Madoff family feuds, investors will at least be a little closer to getting their money back.

By Janine Armin
Associate editor
Corporate Secretary