Tuesday, December 30, 2008

Bailout - $25 million parachute


A former top executive at Merrill Lynch who received a $25 million golden parachute after just three months of work has purchased a $37 million Park Avenue palace.

Peter Kraus, 55, paid the staggering sum for a five-bedroom co-op on New York's posh Park Avenue after getting a $25 million buyout from Merrill Lynch when the company was sold to Bank of America in September, the New York Post reported.

Click here to see more photos of the $37 million palace.

The 15-room apartment — featuring 11-foot-high ceilings, four fireplaces, three maid's rooms, a mahogany-paneled library and a gym upstairs — sold for twice what the previous owners, Democratic fund-raisers Carl Spielvogel and Barbaralee Diamonstein-Spielvogel, paid for it nearly two years ago, the Post reported.

Although he did not officially start work until September, Kraus hit it big after just a couple of days in office, when the Merrill Lynch's CEO sold the company to Bank of America for $50 billion during the market meltdown. [...]

5 comments :

  1. Whats wrong?

    It was an agreed upon contractual agreement between him and his employer.

    ReplyDelete
  2. Chaim said...

    Whats wrong?

    It was an agreed upon contractual agreement between him and his employer.
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    If the employer doesn't have money to pay the agreement - why do the taxpayers have to provide it?

    ReplyDelete
  3. If the employer doesn't have money to pay the agreement - why do the taxpayers have to provide it?
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    A) Merrill Lynch received no taxpayer bailout. (It was bought out privately by Bank of America.)

    B) Even if it had been rescued (which M.L. hadn't), the employee-employer contractual agreement was signed and sealed prior to any subsequent rescue. How would the institution be absolved of its contractual obligations?

    ReplyDelete

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