News

CNBC: Cuomo Subpoenas Thain

A breathless Charlie Gasparino is reporting on CNBC that New York Attorney General has subpoenaed former Merril Lynch CEO John Thain over the $4 billion in bonuses that were paid out to the company’s executives late last year. Under the Martin Act, Cuomo has the power to issue criminal charges for fraud.

Thain resigned from Bank of America last week over reports that he rushed out the bonuses in his last days as C.E.O. Meanwhile, jobs were being shed, shareholder value had been decimated, and billions of dollars in TARP funds were being funneled to BoA to help shore up its acquisition of Merril. Don’t even get us started on the million-dollar office rehab. How stupid is he?

Tags: Bank of America, John Thain, News, TARP, Wall Street