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Mr. Right: Can NYSE’s John Alexander Thain Work for Ken Lewis at Bank of America?

By Amarendra Bhushan for CEOWORLD Magazine Updated:October 2, 2008

If you remember he is the guy who sold Merrill Lynch to Bank of America less than one year after taking the top job. Was it smart move by Kenneth D. Lewis to offer him such a responsible position?
Only time can say. Secondly he can be the front runner for the top job at Bank of America when its current CEO Ken Lewis retires. Some analysts say John Thain is a smart, sober-minded, and highly methodical, and it’s to his credit that Merrill Lynch is ending its 94-year independent history in the arms of Bank of America rather than in bankruptcy.

Merrill Lynch CEO John Thain has a job. He will take a job at Bank of America once the $50 billion acquisition of the brokerage Merrill Lynch is complete. After merging Merrill into Bank of America in the span of a weekend, the highly regarded CEO has accepted Lewis’ offer to be president of Global Banking, Securities and Wealth Management at Bank of America. Merrill Lynch & Co. appointed NYSE Euronext Chief Executive John Thain as its new CEO on Wednesday, leaving Citigroup Inc. still looking for its next leader. NYSE Euronext named insider Duncan Niederauer, co-chief operating officer and president, to succeed Thain as CEO.

“I am delighted that John has agreed to join Bank of America,” said Chief Executive of Bank of America (BAC), in a statement released to the press. “His experience and expertise will be invaluable as we put our two companies together and move forward as the premier financial services company in the world.”

In statements to the press, Bank of America spokespersons said Thain has not been tapped to become the next CEO of the firm—though he will certainly be in the running when that time comes. The new division Thain will direct includes many of the operations that will be merged from Merrill, including the brokerage and mutual fund operations as well as B of A’s investment banking and management operations.

Thain’s appointment is an indication that he will now be the front runner for the top job at Bank of America when its current CEO Ken Lewis retires.“This is an opportunity to create what will be the leading financial institution in the world. Combining these two companies will create great value for our shareholders and clients around the world,” said Thain. “I look forward to working with Ken and the business leaders at both companies as we build the world’s premiere financial services firm.”

Does that mean he’s in line to acend to 61 year old Ken Lewis’ throne?

Not necessarily. Bank spokesman James Mahoney said: “There’s been no commitment around that.” Thain “is joining the team as a senior leader.’

Do you think BofA has made a wise decision in keeping Thain on board?

Was it smart move by Kenneth D. Lewis to offer him such a responsible position?

John A. Thain

John Alexander Thain , Chairman of the Board and Chief Executive Officer of Merrill Lynch & Co., Inc. Director since December 2007, Chairman of the Board and Chief Executive Officer of Merrill Lynch & Co., Inc. since December 2007, Chief Executive Officer of NYSE Euronext, Inc., and its predecessors, which operates a group of securities exchanges and offers financial products and services, from 2004 to 2007, President (from 1999 to 2004); Chief Operating Officer (from 2003 to 2004); Co-Chief Operating Officer (from 1999 to 2003) of The Goldman Sachs Group, Inc., a financial services firm, Other Public Company Directorships: BlackRock, Inc.

Previously, Mr. Thain held management positions at: the New York Stock Exchange (CEO), and Goldman Sachs (President, Chief Operating Officer, Chief Financial Officer). He amassed $300 million in Goldman stock. It was widely believed that Mr. Thain was also a front runner to head Citigroup. Merrill Lynch and Citigroup sought new leaders following the sudden departure of their former CEOs due to disappointing Q3 2007 earnings reports. hain was born in the United States and grew up in Antioch, Illinois. He earned a bachelor’s degree in electrical engineering from MIT in 1977 and an MBA from Harvard Business School in 1979. While attending MIT, John joined the Delta Upsilon Fraternity.

Thain’s son Alex also attended MIT. His daughter, Nicole, graduated from Yale University and his second daughter, Victoria, is an undergraduate at Duke University.

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