Posts filed under “Credit”

Why Thain Over Fink?

Here’s something you may not have heard:

The surprise selection of NYSE CEO John Thain as Merrill’s new CEO over the more widely expected  BlackRock CEO Larry Fink was based on reasons you may not be aware of. 

What are those reasons? Well, according to, Fink would only agree to take the position if Merrill was willing to give a full and complete accounting of it’s subprime exposure:

"Merrill’s selection of Thain was a surprise because the firm had recently
indicated to BlackRock CEO Larry Fink that the job was his if
he wanted it. CNBC has learned that Fink said he would take the job but only if
Merrill did a full accounting of its subprime exposure. At that point, Merrill,
which owns 49% of BlackRock , moved in a different direction and decided to go
with Thain instead."

I obviously have no way to verify that, but I give the benefit of the doubt to CNBC reporters like Charlie Gasparino and Herb Greenberg.  (UPDATE: I have just confirmed with Charlie Gasparino that he was the one who’s fine investigative work uncovered this; You can see some of the discussion via CNBC video here, right margin, labeled "The New Bull at Merrill").

Note: I don’t know who uncovered this. 

If the story is true, and Fink passed on the position (or was passed over) because of his insistence on a complete sub-prime accounting, apparently not accommodated by Merrill, it makes one wonder what the old lady is hiding.



Merrill Taps Thain After Fink Demanded Full Tally
Charlie Gasparino,
CNBC | 14 Nov 2007 | 04:36 PM

Merrill’s New CEO Hoping To ‘Make Things Better’
By with Wires 14 Nov 2007 | 05:30 PM ET

Category: Corporate Management, Credit, Derivatives

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Category: Corporate Management, Credit, Derivatives, Earnings, Psychology, Real Estate, Valuation

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Category: Corporate Management, Credit, Finance, Markets

Would You Like that all in money?

Category: Credit, Currency, Federal Reserve, Finance


Category: Commodities, Consumer Spending, Credit, Economy, Employment, Inflation, War/Defense

Loan Performance by State

Category: Credit, Real Estate

1980s Parallels?

Category: Credit, Federal Reserve, Markets

Can Housing Be “Rescued?”

Category: Credit, Data Analysis, Real Estate, Taxes and Policy

Markets Rally on Fed Rumors

Category: Credit, Economy, Federal Reserve, Inflation

Where was the Bubble: Houses, Rates or Credit?

Category: Credit, Derivatives, Federal Reserve, Fixed Income/Interest Rates, Real Estate