Would you spend $87,000 on an area rug? Absolutely, if you are John Thain, the former CEO of Merrill Lynch.
Thain refurbished his office at Merrill to tune of $1.22 million in company money, according to a Daily Beast/CNBC report.
Pictures of the rug are as yet unavailable, but in the words of the Big Lebowski, we bet it really tied the room together.
It was a rough day for Thain. Hours after the rug story came out, he was ousted from Bank of America, just three weeks after the Merrill merger closed.
Other extravagant purchases reportedly included:
- A “mahogany pedestal table” ($25,000)
- A “19th Century Credenza” ($68,000)
- A “George IV Desk” ($18,000)
- A chandelier in the private dining room ($13,000)
- A “parchment waste can” ($1,400)
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John Thain can decorat 100 rooms on spending same money if he buys rugs direct from the artisans of Tharparkar Pakistan, who make those rugs.
- Posted by Dev…and the pursuit of happiness. Who’s happiness? Sure not the American tax payer owho is in foreclosure and can’t get any assistance from the same banks and “financial institutions” who just months ago were sceaming on capital hill about how much trouble they were in. Wow, it’s good top see OUR tax dollars going to good use. My kid can’t get free lunch at school.
- Posted by A. DawsonObama just “hired” (with our money)the same celebrity decorator to redo the family quarters at the White House … so much for the “sharing of hardships” he spoke of in his inaugural address.
- Posted by decsatsvThis kind of rediculous spending is nothing more than misappropriation of corporate funds. Thain should be indicted, tried, put in jail, and fined an amount equal to 2 or 3 times the value of the misappropriation.
- Posted by golfer78015how easy it is to spend money when it isn’t your own! So sad when they waste so much on things that just don’t matter.. and yes,, the white house china was another gross waste of money! Tax dollars or not.. We have a bunch of crazy people running our country! I am mad as hell but have no idea how to stop the crazy folks in Washintion.. I live within my budget.. it isn’t that hard folks.. just do it!
- Posted by barbHey…This sort of spending is in line with our first lady (Bush) who spent half a MILLION on a new set of dishes for the white house, just weeks before their term ended.
- Posted by JohnEven Warren Buffet wouldn’t do this….
- Posted by Frugal Frankthis guy should should be imprisoned in a big dirty trashcan!
The BOD gets 350-400k a yr for plopping down in a comfy chair for one day a month to read the lies of the CEO and approve his comp pkg…anyone who disagrees doesn’t get the huge check.
- Posted by bobbiemcThe above corporate greed has been going on for years. When deregulation of the finance industry came about, is when it started. There is a definite pecking (resppnsibility) order in the corporate world. It starts with the Board of Directors who are suppose to responsibly manage the corporation. Unfortunately, they have become part of the problem. They are in cahoots with management and as a result look the other way. Bottom line…..shareholders are getting stolen from!
- Posted by beingrealThere would not be this fuss if he bought a picture. Some rugs can be worth $80,000 and much more as antique rugs are the repository of great art and culture.
One needs to be properly and soundly advised.
Did John Thain get stitched up by some random decorator matching the beige walls?
- Posted by Clive RogersProbably but I hope not. Love to see what this rug is so that I might make a meaningful comment.
Was that before or after Merryl received federal funds? Anyway, I’d give him the “18 U.S.C. ยง 666. Theft or bribery concerning programs receiving Federal funds” treatment.
- Posted by RobynneWhat a crook.
You really want me to comment? I don’t think so. Combat veterans would blush.
- Posted by Dr Ian SedwellWe are all shocked and mortified at this man’s outrageous behavior and rightfully so. The thing is, you don’t just wake up one morning and decided to be this reckless. This is the result of small, selfish, seemingly insignificant business decisions culminating into most of the BIG problems we have today. It begins with the small stuff !Sentencing this man to death ( which seems more than appropriate)does not and will not stop this kind of behaviour. We all need to take a close look at our own disregard and disrespect for money. In doing so, we help each other and will become a better people and nation for it.
- Posted by JohnMaybe I am a little slow on the take up - 80gs on a rug?
- Posted by AHeatsno matter how it may be construed this is not representing the best interests of the shareholders
egos contunue to run a muck
It is all about governance, governance, governance. Who is holding people accountable in the chain of command? that is the big failure: Governance + enterprise risk, throughout the corporate, especially financial sector. And transparency is not enough, it needs to be tied to accountability. Perhaps the new executive emphasis on values will help us down the road..
- Posted by Maryou wan to teach wall street a lesson? and the greedy bankers too? buy a forclosed home for 1/3rd the price, in a family member’s name, then walk way from your mortgage trap. A person who pays 2000 a month can save 24000 in a year, 50000 in two and in seven years,168000.00. of course save the money in your kid’s name. then, you can take the home you already bought for a steal, give it to your kid(s) for being so generous and lending you their credit. and now seven years later, you can pay cash for that big 5 bedroom house you been dreaming about and pay cash and guess what? no mortgage.. no expensive forced insurance(which will force ins companies to lower their rates,)and you can save again for another 5 years and go on vacation everyday. Of course the figures are conservative because the bank will have to pay you interest on your savings while it grows.
- Posted by igotmywayShag makes a good point. That office upgrade was in the company’s budget before he spent it. Several people in this organization saw this coming and thought it was reasonable. These people still have their jobs and one of them will take his place.
- Posted by MikeGSadly, he probably still doesn’t understand what he did wrong. He thought he was being spendhtrift by passing up the $200K one.
- Posted by MikeG