Operator Speaking by Zachary Constantine

Banking On Your Confidence

2009-01-22 21:46:00 // The Operator

John Thain, who resigned from Bank of America on Thursday, bought 84,600 common shares of the bank on Wednesday, according to a regulatory filing. The man named to replace him, Brian Moynihan, bought a total of 30,000 common shares over a span of two days.

Thain bought his stock at $5.713 a share and Moynihan bought his shares at between $5.79 to $6.13 a share.

- John Thain bought 84,600 B. of A. common shares on Wednesday
by Sue Chang at MarketWatch.com

That is an investment of $483,319.80 for John Alexander Thane, the former CEO and chairman of the failed investment firm Merrill Lynch (identified as the best-paid CEO of 2007) and an investment of about $180,000 for his replacement.

It is, perhaps, a token gesture – Thane apparently made about $80,000,000 a year and had no qualms about blowing $1m on office redecoration (granted, that was the company’s money, not his own), however, one would expect that he plans to see a return on his investment – if only for the fact that he is no longer in charge of anything (just as his replacement likely expects investor confidence to turn a tidy little profit when he sells his shares before jumping ship or pretending to go down with it).

Keep an eye on NYSE:BAC – it should be interesting.

Life lesson: Figure out how to wrangle profit from others’ confidence (even if that confidence is misplaced in your leadership) and you will never go hungry.

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