Former Merrill Lynch CEO John Thain's estimate of losses in early December was only a fraction of the $15.3 billion loss that the brokerage giant later reported, Bank of America senior executives told CNBC.
Responding to Thain's interview on CNBC, during which he said Bank of America was well aware of Merrill's losses before the two firms merged on Jan. 1, these executives said that at a Dec. 8 board meeting, Thain proposed paying Merrill executives about $3 billion in bonuses before the merger was completed.
When Merrill's bigger-than-expected loss came to light in mid-December, these executives said they suggested Thain kill the planned bonuses or at least roll them back dramatically. Thain, however, insisted on making the payouts.