Former Merrill CEO Dan Tully says the losses are 'sickening'

Former Merill Lynch Chairman Dan Tully, who retired in 1997, is the first former Merrill CEO to kick Stan O'Neal when he's down.  According to Bloomberg:

Tully, who served as chairman for four years before retiring a decade ago, said in an interview yesterday that he has spoken with current and former employees of New York-based Merrill who share his views. He declined to comment on whether O'Neal should be replaced, saying the board must decide. The Wall Street Journal, citing a person briefed on the discussions, said on its Web site today that O'Neal has decided to leave the firm.

``With the help of God this too shall pass, and the firm will continue to do extraordinarily well, but without the excessive risk that apparently was taken,'' Tully, 75, said in a telephone interview from his home in Florida. ``This company is bigger than any one of us, and it is a tremendous franchise.''

``I've been in touch with many, many of our fellow employees and ex-employees and they're sick, everyone is sick about it, as I am too,'' Tully said. ``It's awful. You hate like hell to see the firm, the headlines in the New York Times and Barron's today. It's sickening.''

The New York Times reported Oct. 26 that O'Neal initiated talks about a possible merger with the Charlotte, North Carolina-based bank Wachovia Corp. prior to broaching the matter with the board. Merrill Lynch officials declined to comment on the reports.

Tully said he didn't have firsthand knowledge of any such talks.

``You sure as hell don't want to sell something on a bailout,'' he said. ``And if you were thinking of that, you would sure as hell discuss it with the finance committee and the entire board'' in advance.

Merrill's Former Chief Tully Calls Losses `Sickening' - Bloomberg