Merrill and BofA - doesn't this smell funny?

I think someone’s getting robbed Blind.

 Merrill loses $15b in a quarter.

Merrill Pays out $15 b in Compensation down only 5.7% from the year earlier. ( uh? the company went broke and  total compensation is down only 5.7%???)

Merrill distributes Bonus’ 2 months earlier than normal and 3 days prior to closing with BofA

Because of Merrill the US Gov puts in $20 b additional into BofA for a $45b total since October 2008.

Not including guarantees on loans etc.

 WTF???? Surely even a moron finds this “troubling” What other industries pay any form of bonus in a prepackaged bankruptcy, let alone the early payout, let alone 3 days prior to close....etc etc...

 From Multiple Sources.

 According to a securities filing last week, Merrill's overall compensation and benefit expenses were down by 5.7%, to $15 billion in the year ended Dec. 26, from $15.9 billion a year earlier. The average Merrill employee got $247,423 in compensation and benefits in 2008, down just slightly from 2007.

Merrill had decided to pay bonuses in December ahead of their usual payout time in February, and just three days before the merger with Bank of America closed. What is more troubling is that the shell of a company had allocated a total comp pool for distribution that was $15 billion or just 6% lower than 2007. 

Merrill Lynch reported a $15.31 billion fourth-quarter loss, and Bank of America has warned its shareholders to brace for even bigger losses in coming quarters.

The government plans to transfer the $20 billion to Bank of America by the end of the day in exchange for preferred stock shares with an 8% dividend. That will bring the government’s total investment in BofA up to $45 billion dollars. The company received $15 billion in government funds in October and another $10 billion last Friday to assist with its takeover of Merrill Lynch.

The government will also guarantee $118 billion of Bank of America assets, including commercial and real estate holdings and credit default swaps. Bank of America will be required to absorb the first $10 billion of losses from its pool of assets, the “large majority” of which were assumed with the purchase of Merrill Lynch. BofA will cover just 10% of any losses incurred beyond that point, and the U.S. Federal Reserve and the Federal Deposit Insurance Co. will split what’s left of the tab.