“San Francisco — Former Uber CEO Travis Kalanick appointed unilaterally on Friday two new members to the board of directors in a surprise move that increased tension within the leadership of the popular ride service.
Kalanick, who was pushed to resign in June as head of Uber, which dominates the market for on-demand car rides, retains sizeable voting rights in the privately held company.
On Friday, he appointed former Xerox chairman and CEO Ursula Burns and former CEO of CIT Group, Merrill Lynch, and the New York Stock Exchange John Thain to the board.”
Considering Ursula Burns is the one who drove Xerox into the ground with her complicity in the massive amount of corruption charges brought against the company while under her watch, it’s safe to say Uber will soon be on the decline.
As for John Thain. Well, he is no angel either. This dirt bag expected the US taxpayers to bail him out after he mismanaged Merrill Lynch into the history books.
Once the financial crisis hit in 2008, Merrill Lynch was incurring staggering losses. Greg Farrell describes the situation well:
“The losses resulted from the steady erosion in value of assets already on Merrill’s books, exacerbated by the demise of Bear Stearns. Merrill’s operations actually performed well in the quarter, but not well enough to make up for the write-downs associated with those toxic assets (Farrell 167).
If Lehman Brothers failed, Merrill Lynch would be next to go under. Merrill needed to find a buyer. However, John Thain continued to talk about the strength of the Merrill Lynch balance sheet and that the company would prevail. Thain did not want to sell the company, mainly because that would entail that he lose his precious CEO position. Farrell notes “Thain loathed the idea of giving up his job as CEO of Merrill Lynch, and felt revulsion at selling to a company that proudly proclaimed itself to be the Walmart of banking” (256-257). He tried very hard to get financing from Goldman Sachs in exchange for a minority stake in Merrill, but was ultimately unsuccessful. Merrill Lynch’s President Greg Fleming tried to reason with Thain that Bank of America is the best option for the firm, but Thain continued to drag his feet. Thain even considered the notion that “if he decided to play a high stakes game of ‘chicken,’ the government would probably have save Merrill Lynch, because it would have to save Morgan Stanley and Goldman as well, or risk Armageddon in the capital markets” (280-281).”
This a match made in heaven! Both of these scumbags have destroyed billion dollar companies with their bare hands.
Unfortunately, Uber is next if they hire these two corrupt, immoral dirt bags.