Does John Thain have a credibility problem?

In a way, it's unfair to tar Merrill Lynch CEO John Thain with the "not credible" label. But that description has been voiced a lot this year--fairly or not. MarketWatch notes that in January, Thain said Merrill was well-capitalized and confident of its capital base. In April, Thain said Merrill wouldn't need to return to the equity markets. And earlier this month, Thain reiterated that the firm's capital position was sound and its exposure to CDOs manageable. Of course, it has raised about $18 billion since January, leading to a lot of grumbling. Obviously, in a deteriorating market, circumstances change. What once seemed manageable may no longer appear as such. But his PR and IR people should have been all over him about his choice of words. He no doubt wanted to make definitive statements to be a stand up guy. It may have been wiser to hedge.  

For more:
- here's the MarketWatch article

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