I was watching the news earlier today and became furious while listening to a report on the actions of Merrill Lynch’s former CEO John Thain. Associated Press writers Stephen Bernard and Ieva M. Augstums reported from New York on January 22nd on Thain’s departure.

Wall Street bonuses, a sore point as the government gives billions of dollars in bailout money to the financial industry, have apparently cost former Merrill Lynch & Co. CEO John Thain his new job at Bank of America Corp. Thain resigned from Bank of America Thursday following news that Merrill Lynch had rushed out its year-end bonuses, paying them just before Bank of America completed its acquisition of Merrill Lynch and sought $20 billion in additional funding. The company gave no reason for Thain’s departure, but its timing, coming hours after news reports about the bonuses, made it likely that there was a connection with the payouts. The bonuses to Merrill Lynch executives were also paid out as the company prepared to report a $15.3 billion fourth-quarter loss — a loss that led Bank of America to request and receive government funds on top of the $25 billion it had already been given.
In the wake of a possible financial industry collapse, here was an example of what appeared to be another case of old fashioned American greed, or so it seemed. Was it legal to take those bonuses?
On January 23rd, Kansas City Star Editorial Page columnist, Yael T. Abouhalkah reported:
John Thain has become the poster child for an American banking system that’s full of greedy, money-hungry people unwilling to change their ways. The key questions now:
— Did Thain, who resigned Thursday from Bank of America, essentially use taxpayer funds last winter to unethically reward employees of his former company, Merrill Lynch? — Can prosecutors charge Thain with stealing and put him in jail to be an example to the other greedy bankers out there? The answer to the first question appears to be a resounding yes.The second answer is more unclear, but I sure hope Congress and prosecutors try hard to see whether Thain should serve some jail time for his actions.
My next call was to the most levelheaded guy on the planet (and one of my best friends) Jonathan Gregory. Jonathan is Oil and Gas Banker and a solid person who teaches a weekly men’s bible study at St. John’s Downtown. Minutes after our conversation, he sent me this message from his Blackberry:
Just a thought… Your question is a good one, but in my opinion not the right one. Our society is blindly obsessed with making paper (money). If only we could look in the mirror and see our own obsessions with the material. Oh to be poor and not have all these choices. Movie stars, entertainers, athletes, corporate execs, dope dealers, and even hope peddlers all making money off the backs of the blind masses. Like sheep being led to the slaughter the masses are perishing, spending their hard earned money on all types of nonsensical items. Bernard Madoff made money off of greedy people and institutions that were seeking money for nothing. If we paid attention to the signs, we would have seen the famine approaching and like the biblical character Joseph we would have prepared. Instead we were all busy enjoying our pleasures: now we sit and point fingers. Did our government let us down, or did we let our government down? Have our churches let us down, or have we let our churches down? After all churches and democracies don’t exists without we the people. Let’s face the reality that many of us are hypocritical haters who if given the opportunity to make a $100 million from a skill or gift would jump at the chance. It took Solomon a lifetime to realize the stuff was worthless. How long will it take us to realize the same?
Was it legal for Thain to take those last minute bonuses? Yes. Was it ethical to take those last minute bonuses? It depends! Your answer depends on whether you live in the land of lack or the land of enough. Remember: “He who doesn’t know what enough is, will never have it.”

What do you think?

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