Jan. 26 (Bloomberg) -- Former Merrill Lynch & Co. Chief Executive Officer John Thain, who sold his firm to Bank of America Corp., plans to repay expenses incurred for renovating his office last year, a person familiar with the matter said.

Thain, ousted last week by Bank of America CEO Kenneth Lewis, spent $1.2 million to redecorate the office, a person familiar with the matter said. His departure came after Merrill posted an unexpectedly large loss in the fourth quarter.

To contact the reporter on this story: Bradley Keoun in New York at bkeoun@bloomberg.net

Last Updated: January 26, 2009 08:39 EST