Yet Thain's reputation unraveled as an unexpected 15

EST), after it had gained 7.15 percent in 2009.EADS faces steep penalties over A400M delays now stretching beyond three years. (Corrects name of analyst's company in third paragraph) Stocks Funds News ETFs News By Elinor Comlay NEW YORK, Jan 22 (Reuters) - The bloodletting in WallStreet's top ranks claimed a big target on Thursday as Bank ofAmerica ousted former Merrill Lynch CEO John Thain, who lastfall won accolades for the deal that saved the storied bank andits "thundering herd" of brokers. Thain, a reserved MIT grad, who once was nicknamed"I-robot," was regarded until 14 months ago as one of WallStreet's steadiest hands. But mounting losses at Merrill havecritics blasting his compensation and lavish spending on officedecorations. "What we are seeing is the end of the Masters of theUniverse," said Nancy Bush, analyst with NAB Research. Sheexplained that the extravagant lifestyle long associated withmajor Wall Street dealmakers is no longer acceptable.

An unlikely poster boy for a blame game, Thain wasblindsided as the mortgage crisis spiraled into a credit crunchand then a full-blown global recession that forced Merrill tosell itself to Bank of America at a fire-sale price. Once Goldman Sachs Group's (GS.N) head of operations andtechnology, Thain received the "I-robot" nickname when he wasCEO of NYSE Euronext, which he pulled into the electronic era,winning an image for leadership. Thain, whose departure is effective immediately, wasunavailable for comment. He hardly seemed like the kind ofexecutive who would be remembered for over-the-top perks. Yet Thain's reputation unraveled as an unexpected $15.31billion fourth-quarter loss at Merrill left Bank of Americathreatening to abandon its acquisition of the brokerage withoutgovernment financing.

Suddenly critics took notice of reports that he hadrequested a bonus and spent $1,405 on a garbage pail during a$1.22 million renovation of his office. It is an abrupt fall for Thain, whose years as chiefoperating officer at Goldman Sachs and running NYSE had won himthe sobriquet "Mr Fix-It." That's just what Merrill needed when he took over inDecember 2007, after predecessor Stanley O'Neal dove deeplyinto the toxic mortgage debt that would prove Merrill'sundoing. In September, Bank of America Chief Executive Kenneth Lewislavished praise on Thain at a press conference announcing theMerrill purchase. "It was never about him; it was always about the deal,"Lewis said. But Thain's focus on the business perhaps cost him a senseof awareness and proportion that might otherwise have preventedsome missteps.

CNBC reported on Thursday that Thain hired well-known LosAngeles interior designer Michael Smith to redecorate hisMerrill office a year ago. The $1.22 million bill included$35,115 for a "commode on legs" and the $1,405 waste can. In December, The Wall Street Journal reported that Thainhad been seeking a bonus of $5 million to $10 million. Many had questioned whether Thain would play second fiddleat Bank of America after he was named head of global banking,securities and wealth management.