Bank of America to buy Merrill Lynch (Charlotte: mortgage, credit card)

[BlackOut]

Originally Posted by Whytewulf

You are right Ani.. There is very little overlap. The biggest would be in HR functions and support. BofA has something like 4500 traders, Merrill has 15,000+ as I recall. Either way, it's a time to clean house a bit, so I am sure you will see some layoffs, but this one is going to take a long time to integrate.

Ironically Ken Lewis had been stating he wanted to keep out of the investment world, but then again, when you see something to help your business, I appreciate the fact that he has no problem doing what he feels is right for the company.

Some layoffs? It will be more like 20,000.

[Whytewulf]

Originally Posted by BlackOut

Some layoffs? It will be more like 20,000.

And you are getting this information from where?

Merrill only has about 60,000 Associates of which around 16,000 are traders/advisors. If they generate revenue they would stay. Again very little overlap in this deal, but you will see some consolidation. Probably won't know until 2010 anyway.

[anifani821]

There is no reason Merrill would need to lay off. Economies of scale would suggest some loss in HR, marketing departments, etc. but only if BofA decides to merge some functions - but they may not do that. And I guess they could move SOME of the operations to CLT, but that business model (Merrill's) pretty much dictates that the brokers in NYC remain in NYC (I would think) as well as in their existing offices throughout the world. So I can't see people losing a lot of jobs, except at the very top Executive tier.

[Londonlawyer]

Originally Posted by Whytewulf

Well, this I am sure will bring out the naysayers and feer that BofA is moving more to NY....

B of A's move to NY is inevitable. It clearly wants to be a major player in financial services and that can only be done by a company based in NY or London -- or to a lesser extent, HK, Shanghai or Tokyo. Charlotte was an appropriate city for Nationsbank. NY is an appropriate city for the B of A that is emerging.

[anifani821]

Originally Posted by Londonlawyer

B of A's move to NY is inevitable. It clearly wants to be a major player in financial services and that can only be done by a company based in NY or London -- or to a lesser extent, HK, Shanghai or Tokyo. Charlotte was an appropriate city for Nationsbank. NY is an appropriate city for the B of A that is emerging.

Well, that is good news. I need to get a job w/ BofA so they will transfer me to Manhatten.

Looks like BofA is doing fine right where it is.

[ohioaninsc]

Why would they have to move to NYC? The current communication technology should allow a company like B of A to be able to remain in CLT and still be a big player in the Financial Services sector, I would think.

[Londonlawyer]

Originally Posted by anifani821

Well, that is good news. I need to get a job w/ BofA so they will transfer me to Manhatten.

Looks like BofA is doing fine right where it is.

Prior to last night, B of A was a minor leaguer in terms of i banking, and Charlotte suited it. It obviously has bigger aspirations that only NY or London can suit.

[anifani821]

Originally Posted by Londonlawyer

Prior to last night, B of A was a minor leaguer in terms of i banking, and Charlotte suited it. It obviously has bigger aspirations that only NY or London can suit.

Well thank you for reading your crystal ball and setting us all straight, Londonlawyer. (Shouldn't that be - London Barrister???)

[Londonlawyer]

You're quite welcome. I focus on financial markets and am involved with i banks, hedge funds and private equity firms, so I think I might have a little insight into the issue.

I'm sorry if reality it hurts your civic pride. What will you do when Wachovia and B of A are no longer based here? Will you require massive doses of Prozac to deal with reality?

[anifani821]

Originally Posted by Londonlawyer

You're quite welcome. I focus on financial markets and am involved with i banks, hedge funds and private equity firms, so I think I might have a little insight into the issue.

Oh, I am sure you do. Thank you for warning us about the imminent loss of BofA from our fair city.