John Thain: the investment banking 'Superman' who crashed back to earth

John Thain was once hailed as the saviour of Merrill Lynch. But, after trying to pay huge bonuses as his firm was being bailed out, and spending $1.2m to make-over his office, his new bosses decided enough is enough.

John Thain did not seem to realise what was about to hit him. Despite presiding over the worst quarterly loss in Merrill Lynch's 94-year history, a brewing "secret bonus" scandal and some frankly tawdry revelations about his decorating extravagances, it was business as usual for Thain last week. On Wednesday, he bought 8,400 shares in Merrill's new owner, Bank of America (BoA), and was finalising plans to jet off to Davos, notes the FT. But the following morning it was BoA chief Ken Lewis who hopped on a plane to confront Thain in his office. Fifteen minutes later, it was all over.

Thain's exit caps the stunning downfall of an investment bank whose name for many is synonymous with Wall Street, says The New York Times. But it is also the derailment of "a charmed career". Little more than a year ago, Thain, 53, was being hailed as "the saviour of Merrill Lynch": the tough, coolly clinical Mr Fix-it who was parachuted in to mop up the mess sustained during the reckless reign of Stan O'Neal.

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