Merrill CEO may be on way out
Report: Stanley O’Neal could lose his job after approaching Wachovia about a tie-up without getting board approval first.
LONDON (CNNMoney.com) — Merrill Lynch & Co., Inc. Chief Executive Stanley O’Neal may be on his way out after he reportedly broached Wachovia about a merger without consulting Merrill’s board.
Late last week O’Neal called Wachovia’s (Charts, Fortune 500) CEO to gauge his interest in a merger but breached corporate protocol by not getting approval from Merrill’s board first, the New York Times said, citing people close to the bank.
According to the newspaper, Wachovia CEO Kennedy Thompson acknowledged the difficulty of a merger but expressed interest in discussions.
Merrill’s (Charts, Fortune 500) CEO is already feeling the pressure after the bank took a massive $7.9 billion writedown in the third quarter related to bad mortgage bets. The losses were far greater than the $5 billion the company had initially estimated.
The board of the troubled Wall Street firm has already discussed potential candidates to replace O’Neal, the newspaper said, citing people knowledgeable of the board’s proceedings.
They include Laurence Fink, chairman and chief executive of BlackRock, an investment firm in which Merrill owns a stake, and New York Stock Exchange CEO John Thain, the report said.
