Merrill Lynch CEO Asks Jeff Kronthal to Bring It Oh no he didn’t! In what looks like a fuck-you to his predecessor, new Merrill Lynch CEO John Thain has announced he is hiring back Jeff Kronthal, one of six top trading executives former CEO Stan O’Neal fired back in the summer of 2006, reportedly after they resisted his directive to increase risk-taking by underwriting mortgage-backed securities. O’Neal, of course, was fired himself this past November for precisely that — his enthusiasm for the subprime poison apple left Merrill with record losses. Awesomely, Kronthal’s new role at Merrill will be fixing the mess his old boss made; he’s been hired, according to Merrill co-pres Gregory Fleming, to “advise on the firm’s fixed-income business and risk management.” The job is temporary — Kronthal has his own hedge fund launching in mid-2008 — but the gesture is still meaningful, as many have said that had Kronthal and the other sacked fixed-income veterans not left, the bank might not be in the shape it is today. According to the Journal, Kronthal received a standing ovation when he appeared on a Merrill trading floor yesterday. Basically, it’s kind of like the second half of that seminal film Bring It On, after high-school cheerleading squad the Rancho Carne Toros are embarrassed by their spirit-fingers performance, and Torrance Shipman (Kirsten Dunst) takes control back from Courtney and Whitney and leads the squad to victory with an original routine. Go Merrill!
Kronthal to Return As Merrill Advisor [WSJ]