Financial Times FT.com

Merrill delivered bonuses before BofA deal

By Greg Farrell and Julie MacIntosh in New York

Published: January 21 2009 23:52 | Last updated: January 21 2009 23:52

Merrill Lynch took the unusual step of accelerating bonus payments by a month last year, doling out billions of dollars to employees just three days before the closing of its sale to Bank of America.

The timing is notable because the money was paid as Merrill’s losses were mounting and Ken Lewis, BofA’s chief executive, was seeking additional funds from the government’s troubled asset recovery programme to help close the deal.

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