Bankruptcy Doesn't Mean No Bonus

by Chris Sturr | January 24, 2009

Merrill Lynch is under NY Attorney General Andrew Cuomo’s spotlight after doling out billions in year-end bonuses just days before the bankrupt company was taken over by Bank of America (a company that has received $25 billion in direct bailout funds, then just got another $20 billion plus another $100 billion in guarantees for bad debt).

How much were the bonuses? $15 billion. Who is going to pay for these bonuses given by a company with no money? The one that bought it–Bank of America. What money are they going to use? Seventy-five percent of the latest $20 billion they got in taxpayer bailout money.

Before all that, Merrill Lynch also spent over a million dollars refurbishing the CEO’s office last year while the company was going down the tubes, as we reported yesterday.

Now these and other shenanigans are attracting the attention of the Obama administration and members of Congress who are vowing to put restrictions on corporate windfalls for companies that are receiving future bailout money. No word yet and getting money back from the folks who absconded with the first batch.

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