Filed under: Deals, Rumors, Conventions and conferences, Newspapers, Scandals, Merrill Lynch (MER), Wachovia Corp (WB)

Sources have told The New York Times that Merrill Lynch (NYSE: MER) CEO E. Stanley O’Neal has approached Wachovia (NYSE: WB) about the possibility of a merger. But here’s where it gets really interesting. According to The Times:

Mr. O’Neal broached the possibility of a merger with Wachovia, the bank based in Charlotte, N.C., without first getting the approval of Merrill’s board, a major breach of corporate protocol at a time when directors were already concerned about the company’s performance, these people said.

At the risk of being overly judgmental, I have to say that, if true, this raises serious questions about Mr. O’Neal’s intelligence. After you just reported a $7.9 billion dollar write-down, you would have to think you were on the hot seat, at least to some extent. And what better way to restore the board’s confidence than to explore a merger behind its back?

The rumors about O’Neal’s future should heat up now, with The Times also reporting that board has already discussed possible successors. But given this latest report, I wonder: Does O’Neal want to get fired?

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