Thain fights back after bonus row

John Thain hit back today at suggestions that Merrill Lynch paid 2008 bonuses a month early without telling its new owners at Bank of America, and that the acquiring firm was kept in the dark over the extent of losses and writedowns at Merrill. In an email to senior staff he said that both the timing and composition of the discretionary bonus pool — 41% down on 2007 and less than the amount agreed under the merger agreement — was determined together with Bank of America.