Bank of America, finding itself in a little bit of trouble these days, announced the resignation of John Thaine, the former CEO of Merrill Lynch. Bank of America had begun to rethink the offer to acquire Merrill Lynch in light of the continued steep losses at that company, but ultimately proceeded after receiving an additional $20 billion of federal money. Aside from some downside guarantees from the federal government BoA now owns all of the putrid balance sheet of Merrill, and it is begining to drag them down. Today MSNBC is reporting that Thain, after announcing a $12 billion dollar loss at Merrill last November, spent millions to renovate his office and on other frivolous items. From MSNBC:

CNBC has also learned that Thain spent $1.22 million redesigning his office — including $35,115 for a “commode on legs” — when he became CEO of Merrill Lynch a year ago. Thain also paid his driver $230,000 for one years work, which included the driver’s $85,000 salary and bonus of $18,000, and another $128,000 in over-time pay, documents show. Drivers of top executives are often paid about half that amount.

Such expenses would have followed $12.2 billion of net losses at Merrill in the second half of 2007 as writedowns on mortgages and other toxic debt began to mount. Thain became chief executive in December 2007.

Additionally Thain moved up the bonuses paid to Merrill executives to December of last year in order to pay them before the purchase by BoA closed on January 1. Very good of him to be distributing bonuses after Merrill reported a $15 billion dollar loss in the fourth quarter. Yes that was a QUARTERLY loss of $15 billion.

Bank of America now says that they signed off on the bonuses paid in December.

“Merrill was an independent company until Jan. 1 of 2009,” said Bank of America spokesman Scott Silvestri. “John Thain decided to pay year-end incentives in December, as opposed to their normal date in January. Bank of America was informed of his decision.”

So Merrill and BoA feel that it is ok to pay bonuses after taking federal money and posting a one quarter loss of $15 billion. It is no wonder people are outraged by the bailout and some of the abuses involved. Do you believe the nerve on these guys.