Merrill Reportedly Paid Bonuses Early as Merger Closed

The controversy over Bank of America’s acquisition of Merrill Lynchappeared to grow on Thursday with a report in the Financial Times that Merrill paid out billions of dollars in bonuses to its employees three days before the sale went through — and well before it has paid out bonuses in previous years.

The bonuses were approved just before Bank of America learned that Merrill’s fourth-quarter losses would be much larger than it had expected, the report said. The swelling losses forced Bank of America to seek a new round of federal aid as it moved to complete the deal.

Citing an undisclosed source, the Financial Times said Merrill paid out an estimated $3 billion to $4 billion in bonuses in late December. It normally pays bonuses in late January or early February.

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http://dealbook.blogs.nytimes.com/2009/01/22/merrill-reportedly-paid-bonuses-early-as-merger-closed/