Oh, how the mighty have fallen. The Wall Street Journal reported Sunday that Merrill Lynch & Co. CEO and chairman Stanley O'Neal ended his six-year reign at the company, with the official announcement to be released as soon as Monday.
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The imminent resignation follows the New York bank's tumultuous October free fall. Just last week, the company registered one of the worst quarterly earnings ever, posting a $2.24 billion loss, six times the amount the bank forecast just three weeks earlier. Overall, the company said it will take an $8.4 billion writedown on loans and bonds backed by home loans, almost double Merrill's estimate on Oct. 5.
Meanwhile, behind this sea of red, in a last ditch effort to save himself and his company, O'Neal without board approval approached Wachovia Corp. CEO G. Kennedy Thompson about a possible merger. When Merrill's board got wind of those talks, O'Neil's fate had been determined. If O'Neal didn't resign, Merriill's board would've forced him to walk the plank. So, who is Merrill looking to right this sinking ship?
- The strongest contender is BlackRock Inc. CEO Laurence D. Fink with his experience in mortgage-backed securities and strong ties to Merrill's old guard
- Within, Merrill co-president Gregory Fleming and Bob McCann, the company's head of its retail brokerage firm, are also being considered
- Another outside candidate is NYSE Euronext CEO John Thain
— Gerald Magpily
See Dealscape: Wachovia reachout is last call
See Wall Street Journal article
See New York Times article
See Dealscape: O'Neal's real deal of the day
See Dealscape: Merrill Lynch-Wachovia tie-up talk
See Dealscape: Is wounded bull Merrill a target?
