Thain: Unlikely poster boy in Wall Street blame game

By Elinor Comlay

NEW YORK (Reuters) - The bloodletting in Wall Street's top ranks claimed a big target on Thursday as Bank of America ousted former Merrill Lynch CEO John Thain, who last fall won accolades for the deal that saved the storied bank and its "thundering herd" of brokers.

Thain, a reserved MIT grad, who once was nicknamed "I-robot," was regarded until 14 months ago as one of Wall Street's steadiest hands. But mounting losses at Merrill have critics blasting his compensation and lavish spending on office decorations.

"What we are seeing is the end of the Masters of the Universe," said Nancy Bush, analyst with NAB Capital. She explained that the extravagant lifestyle long associated with major Wall Street dealmakers is no longer acceptable.

An unlikely poster boy for a blame game, Thain was blindsided as the mortgage crisis spiraled into a credit crunch and then a full-blown global recession that forced Merrill to sell itself to Bank of America at a fire-sale price.

Once Goldman Sachs Group's head of operations and technology, Thain received the "I-robot" nickname when he was CEO of NYSE Euronext, which he pulled into the electronic era, winning an image for leadership.

Thain, whose departure is effective immediately, was unavailable for comment. He hardly seemed like the kind of executive who would be remembered for over-the-top perks.

Yet Thain's reputation unraveled as an unexpected $15.31 billion fourth-quarter loss at Merrill left Bank of America threatening to abandon its acquisition of the brokerage without government financing.

Suddenly critics took notice of reports that he had requested a bonus and spent $1,405 on a garbage pail during a $1.22 million renovation of his office.