Thain resigns from Bank of America

NEW YORK, Jan. 22 (UPI) -- Former Merrill Lynch top executive John Thain resigned from Bank of America after a quick meeting in New York with his new boss, a bank spokesman said.

Thain and Bank of America Chief Executive Officer Ken Lewis met for 15 minutes Thursday morning, after which Thain resigned.

Bank of America spokesman Robert Stickler said."they mutually agreed that his situation was not working," The New York Times reported.

Bank of America purchased the once-proud brokerage firm Merrill Lynch in January. But the relationship between Lewis and Thain has been strained, a source said.

Part of the tension may have been the result of Thain's decision to hand out bonus payments just three days before the merger closed Jan. 1, the Times said.

Losses at Merrill Lynch put Bank of America in the position of having to ask for $20 billion in federal assistance to close the deal. The government, with Bank of America's federal bailout now totaling $45 billion, is now the bank's largest shareholder with a 6 percent stake in the financial giant.