Merrill Lynch CEO Stan O’Neal Feeling Pressure to Quit

Stan O’Neal, who has been the CEO Merrill Lynch since 2002, is under serious scrutiny since his firm announced a multi-billion dollar quarterly loss recently. The loss came in large part due to O’Neal’s investment in mortgage backed securities that have been decimated by the recent credit crisis.

Public opinion of the Merrill CEO is so low that the company’s stock jumped the most it has in several years when word got out that the board of directors was going to meet to discuss whether he should be retained, fired, or asked to step down. Board members seem confident that retaining Mr O’Neal is the least likely option. The movement the price of Merrill shares is proof that public opinion favors his removal, so stock holders can’t be happy.

O’Neal took the reigns at Merrill in 2002 amidst somewhat similar circumstances. The CEO at the time had come under fire for causing what were then the biggest losses in company history. As of the latest round of losses though, O’Neal is the CEO to be held responsible for the biggest write-downs ever for Merrill Lynch.

In the wake of this turmoil and the general drop in Merrill’s stock price, experts view the company as a prime target for a takeover by a competitor. Time will tell if another big financial will take advantage of O’Neal’s mistakes.