Bank of america also acquired countrywide financial, a mortgage servicing company, in 2008. Bank of america was going to buy merrill lynch for one of the largest bank mergers and acquisitions in the world. The acquisition was scheduled to be closed on january 1, 2009. Such a merger would mean bank of america, the nations secondlargest lender, would assume all of the brokerages obligations, including. Mergers and acquisitions by bank of america springerlink. Read the case, bank of americas acquisition of merrill lynch on page 702718. The intimate, flyonthe wall tale of the decline and fall of an america icon with. Under terms of the transaction, bank of america would exchange. Bank of america may merge merrill lynch with parent the new. Bank of america after the merrill lynch merger was so swift.
Bank of america became more universal once it acquired merrill lynch. Earlier this week, merrill lynch head john thiel and u. As you know, the period encompassing bank of americas decision to acquire merrill lynch through the consummation of the merger was one of extreme stress in financial markets. In late 2008, bank of america and merrill lynch were in negotiations for a business deal. Bank of america and merrill lynch bank of america completed the acquisition of merrill lynch on 1109. Bank of america merrill lynch is the marketing name for the global banking and global markets businesses of bank of america corporation. Prior to bofas acquisition, merrill lynch had hired john thain as its ceo to save the. Bank of america merrill lynch is the marketing name for the global banking and global markets businesses of bank of america corporation bac. Oct 22, 2011 bank of america and merrill lynch bank of america completed the acquisition of merrill lynch on 1109. In this report, the reporter offers that corporate counsel magazine has pored over hundreds of documents, emails, and transcripts pertaining to the bank of america merger with merrill lynch.
Bank of america merrill lynch acquisition during global financial. The house oversight committee looked at bank of americas merger with merrill lynch a deal struck during the height of the financial crisis in september 2008 and the role of federal financial. Leaving aside the question of whether lewis s failure to publicly. New book reveals why bofa general counsel was fired. Anyway, i think the best moment in this book is when one of the directors.
In connection with the proposed merger, bank of america will file with the sec a registration statement on form s4 that will include a joint proxy statement of bank of america and merrill lynch that also constitutes a prospectus of bank of america. It was clear that if the merger proceeded, and the combined bank of americamerrill lynch entity needed financial support, the government would work to provide such appropriate and necessary. Wealth management and financial services from merrill lynch. As is indicated by the subtitle, no one really comes off well in crash of the titans.
Besides this, a small added benefit from the merger is that bank of america will not need to maintain a separate book of accounts for merrill lynch, which should reduce a. Insurance and annuity products are offered through merrill lynch life agency inc. Merrill lynch was not only bullish on america, it was a big reason why so. If the merger is completed, holders of merrill lynch common stock will have a right to receive 0. Bank of america takeover to end independent merrill reuters. This is a case study of the bank of america and merrill lynch merger. Bank of america, wells close mergers as banking transforms. O n one level, the merger between bank of america and merrill lynch is a simple story of executive hubris and cowardice.
Greed, hubris, the fall of merrill lynch and the nearcollapse of bank of america, the latest financialcrisis. Bank of america merger with merrill lynch sense on cents. Nov 10, 2010 a new book detailing the fall of merrill lynch sheds some interesting light on how swiftly things can come crashing down. The bank may combine its merrill lynch subsidiary with the parent company as part of an effort to simplify its organization and reduce costs, merrill lynch said in a regulatory filing on aug. Trust president keith banks quietly announced that they were teaming up in a new effort. New york sues bank of america over merrill lynch merger. The deal with fleetboston consolidated bank of americas position as uss second largest bank ranked by assets behind citigroup. Lewis wanted to buy the company because of merrill lynch s strongest unit, its 16,000 investment advisors. Case study of the bank of america and merrill lynch merger by.
If the merger is completed, holders of merrill lynch common stock will have a right. It was subsequently approved by the shareholders of bank of america and merrill lynch on december 5, 2008. Nov 12, 2010 merrill lynch was the worlds largest brokerage but in september 2008 at the height of the financial crisis, it ceased to exist as a separate entity when it was acquired by bank of america. Sign up for news about books, authors, and more from penguin random house. On the surface, bank of america thought the merger was a good idea and a good business deal to pursue. Lending and other commercial banking activities are performed globally by banking affiliates of bac and in australia by bank of america, n. Merrill online investing solutions, trading, guidance. The collapse of merill lynch now told in crash of the titans. The decade of the 2000s, the ken lewis decade at bank of america, will likely end with the companys breakup, and with the continued involvement of. Bank of america is not out of the woods yet no sooner did americas biggest bank announce a proposed settlement with the securities and exchange commission sec over the merrill lynch merger. Bank of america careers site apply at bank of america.
Aug 16, 20 bank of america is still trying to get its arms around the big acquisitions it did amid the financial crisis. Jun 11, 2009 kenneth lewis, ceo of bank of america, testified about the events surrounding bank of america s acquisition of merrill lynch and its receipt of federal financial assistance. Trust and fiduciary services are provided by bank of america, n. As you know, the period encompassing bank of america s decision to acquire merrill lynch through the consummation of the merger was one of extreme stress in financial markets. Greed, hubris, the fall of merrill lynch and the near collapse of bank of america.
Shareholder profit, public good, and the hobsons choice during a national crisis, 17 geo. Hubris, the fall of merrill lynch, and the nearcollapse of bank of america. Under terms of the agreement, shareholders of merrill lynch received. Merrill lynch and bank of america were, in many ways, the odd. Bank of america completes merrill lynch purchase bank of. Essay about bank of america and merrill lynch 1162 words. To me, understanding the history of bank of america, merrill lynch and how the merger came to take place put a lot of things in perspective our current corporate culture, attitudes of senior management, the innerworkings of the 2008 financial crisis, etc.
Bank of america and its affiliates consider for employment and hire qualified candidates without regard to race, religious creed, religion, color, sex, sexual orientation, genetic information, gender, gender identity, gender expression, age, national origin, ancestry, citizenship, protected veteran or disability status or any factor prohibited by law, and as such affirms in policy and practice. Merrill came under pressure to find a merger partner came after its. Bank of america buys merrill lynch creating unique financial. Merrill will serve as a subbrand for our investing and wealth management offerings, representing the continuum of capabilities across wealth management, from selfdirected to fullservice advisory services. Jan 01, 2010 to me, understanding the history of bank of america, merrill lynch and how the merger came to take place put a lot of things in perspective our current corporate culture, attitudes of senior management, the innerworkings of the 2008 financial crisis, etc. Along with bofa securities, the investment banking arm, both firms engage in prime brokerage and brokerdealer activities. It is not to be confused with merrill, the wealth management division of bank of america. Insurance and annuity products are offered through. Its been almost a year since bank of america agreed to buy merrill lynch, on. Bank of america buys merrill lynch creating unique.
Greed, hubris, the fall of merrill lynch, and the nearcollapse of bank of america. Bank of america finishes merger of merrill lynch into parent. Leaving aside the question of whether lewiss failure to publicly. In defense of the bank of america merrill lynch deal. Bank of america said it agreed to buy merrill lynch in an allstock deal worth.
The primary concern for bank of america was the actual worth of merrill lynch in 2008, when the market environment fluctuated rapidly. Kenneth lewis, ceo of bank of america, testified about the events surrounding bank of americas acquisition of merrill lynch and its receipt of federal financial assistance. Both sides have had to deal with the bad press that has come from the merger, which saved merrill from bankruptcy and made bank of america one of. The firm is headquartered in new york city, and once occupied the entire 34 stories of 250 vesey street, part of the brookfield place complex in manhattan. The acquisition is expected to be accretive to earnings by 2010. Bofa securities, previously bank of america merrill lynch baml, is an american multinational investment bank division under the auspices of bank of america. Sep 15, 2008 merrill lynch merges with bank of america merrill lynch has agreed to merge with bank of america boa in a desperate attempt to avoid the same fate as that being suffered by lehman brothers. Paulson to explains the bank of americamerrill deal jul. Dec 29, 2010 bank of america and merrill lynch merger house oversight committee 20090711 product 2869651dvd house committee on government reform and oversight. In this guest author blog farrell shares how his book came to be and if you. Merrill lynch was the worlds largest brokerage but in september 2008 at the height of the financial crisis, it ceased to exist as a separate entity when it was acquired by bank of america.
Why bofas decision to merge merrill operations is a good. Merrill lynch merges with bank of america telegraph. The wall street journal reported later that day that merrill lynch was sold to bank of america for 0. It shows the management to be selfcentered, myopic and completely incompetent. Bank of america is not out of the woods yet no sooner did america s biggest bank announce a proposed settlement with the securities and exchange commission sec over the merrill lynch merger. Merger proposed your vote is very important dear stockholder. What exactly happened in the weeks leading up to the merger. Merrill will serve as a subbrand for our investing and wealth management offerings, representing the continuum of capabilities across wealth management, from selfdirected to. Trust will transition to the bank of america brand as the bank of america private bank. A new book detailing the fall of merrill lynch sheds some interesting light on how swiftly things can come crashing down. Aug 20, 20 besides this, a small added benefit from the merger is that bank of america will not need to maintain a separate book of accounts for merrill lynch, which should reduce a reporting headache for.
This verbose title is a new book by greg farrell, who takes readers through the life of banking general counsel tim. More gossip from the bank of americamerrill lynch merger. Merrill lynch for wealth management in 2008 and bank of america merrill lynch for investment banking in. Bank of america acquired merrill lynch in late 2008 during the financial crisis. The book itself is a worthy history of merrill lynchs last 18 months as independent company and its rocky merger with bank of america. Aug 16, 20 bank of america may merge its merrill lynch division. In hank paulsons new book on the brink, the former treasury secretary reveals more information about the bizarre union of bank of america and merrill lynch.
Jan 19, 2020 who are bank of americas main competitors. It is based on the article, fiduciary exemption for public necessity. Merrill lynch merges with bank of america merrill lynch has agreed to merge with bank of america boa in a desperate attempt to avoid the same fate. Merrill lynch for wealth management in 2008 and bank of america merrill lynch for investment banking in 2009. Bank of america has engaged in more than its share of nauseating activities but im not convinced the purchase of merrill lynch was so terrible, or that it. Merrill lynch takeover by bank of america seven pillars. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of bank of america corporation, including bank of america, n. The book itself is a worthy history of merrill lynch s last 18 months as independent company and its rocky merger with bank of america. Bank of america and merrill lynch satisfied so far with merger.
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