Business Week in Review
Delahunt, Lynch remain bailout foes
Three Massachusetts congressmen were among the lawmakers under pressure to switch their votes in favor of the $700 billion bailout bill for the financial industry to help companies dispose of the problem loans on their books.
Bill Delahunt, Steve Lynch and John Tierney were among the 228 representatives who voted against the bill on Monday. Delahunt and Lynch said they were frustrated that the bill would essentially reward Wall Street firms for their mistakes.
By the end of the week, Tierney had switched sides, along with plenty of others: When the House took up a revised bill on Friday, it easily passed in a 263-171 vote.
Merrill Lynch CEO survives takeover
The shakeup in banking boardrooms continued this week, with Bank of America unveiling plans to keep Merrill Lynch CEO John Thain on board as president of B of A's investment banking and wealth management operations.
The bank's wealth management business is currently based in Boston, but Thain plans to stay in New York once B of A wraps up its acquisition of Merrill Lynch.
Sovereign dumps CEO, retains Boston office
The chief executive officer at beleaguered Sovereign Bank is changing, with Joe Campanelli departing to make way for former Chittenden Corp. CEO Paul Perrault.
At least the Sovereign CEO's office will stay in Boston after the leadership changeover, even though the bank is technically headquartered in Pennsylvania.
Fight breaks out over Wachovia's future
The financial industry's merger mania showed no signs of slowing down, with the week starting out with Citigroup's plans to buy Wachovia's banking operations at a fire-sale price of $2 billion with some federal government backing.
But that deal was upended by Friday when Wells Fargo trumped Citigroup with a $15 billion plan to buy all of Wachovia, including Boston fund firm Evergreen Investments, without government assistance. Citigroup is fighting the merger with Wells Fargo.
The Patriot Ledger