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09-14-2008, 09:39 PM
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Senior Member
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Join Date: Jul 2007
Location: Huntersville
1,692 posts, read 1,159,795 times
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Bank of America to buy Merrill Lynch
Well, this I am sure will bring out the naysayers and feer that BofA is moving more to NY, but I think it just strengthens the company. Charlotte may now house the largest Bank in Country if not the World soon.
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09-14-2008, 09:40 PM
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I live in NC but my heart is in Alaska
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Join Date: Jan 2008
Location: Alaska, where women win the Iditarod and men mush poodles!
8,915 posts, read 6,047,303 times
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So Merrill Lynch failed too?
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09-14-2008, 09:42 PM
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Senior Member
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Join Date: Jul 2007
Location: Huntersville
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No, In Fact BofA will be paying $29 per share, a premium over their $17ish closing price on Friday. But Merrill is much stronger than Lehman. I saw a good analysis, Bears was Dead, Lehman was dying, Merrill was just sick.  They have cleaned up a lot since they got the new CEO. I saw BofA and Barclays both backed off Lehman when the gov't wouldn't back the bad real estate deals. |
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09-15-2008, 07:00 AM
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What if Everyone Served Each Other?
Status:
"To New Beginnings!!"
(set 16 days ago)
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Join Date: Jun 2008
Location: Charlotte, NC
4,141 posts, read 1,855,011 times
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Scary stuff. Now that Lehman Bros. is going bankrupt too...will WAMU be bought by JP Morgan Chase?
Hopefully, Wachovia will stay out of the mix...
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09-15-2008, 07:23 AM
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Senior Member
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Join Date: Jun 2008
1,220 posts, read 827,436 times
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Quote:
Originally Posted by Whytewulf
Well, this I am sure will bring out the naysayers and feer that BofA is moving more to NY, but I think it just strengthens the company. Charlotte may now house the largest Bank in Country if not the World soon.
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I agree, a bit risky perhaps, but you never get ahead without risks. People that hate Charlotte will find plenty to complain about now. Especially those that claim our economy evolves around NASCAR. |
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09-15-2008, 07:43 AM
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Senior Member
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Join Date: Mar 2008
467 posts, read 268,763 times
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Lots of jobs will be consolidated. Corporate finance, investment banking, and of course, trading.
One less primary dealer for the Fed... 2 counting Lehman.
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09-15-2008, 08:14 AM
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Life is a Journey
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Join Date: Jan 2007
Location: Yellow Brick Road
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Educate me. I didn't think BofA was big into wealth management - so surely there are not a lot of jobs at BofA that would be affected by a consolidation w/ Merrill. Correct? And one would suppose that Merrill would keeps its presence in NYC. So I don't see this as something that will affect BofA's employees, except those in wealth management. Am I wrong? I assume those jobs are presently in NYC and not CLT? Or am I wrong?
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09-15-2008, 08:21 AM
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Senior Member
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Join Date: Jul 2007
Location: Huntersville
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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.
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09-15-2008, 08:39 AM
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Life is a Journey
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Join Date: Jan 2007
Location: Yellow Brick Road
20,852 posts, read 11,895,819 times
Reputation: 4213
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Quote:
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.
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Seems like a very smart move to me. Makes BofA the largest brokerage in the world now.
Here is news release:
Bank of America Buys Merrill Lynch Creating Unique Financial Services Firm - MarketWatch
"Bank of America expects to achieve $7 billion in pre-tax expense savings, fully realized by 2012. The acquisition is expected to be accretive to earnings by 2010." |
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09-15-2008, 10:10 AM
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Q Continuum
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Join Date: Apr 2007
Location: Candy Mountain, Charlie!
677 posts, read 529,792 times
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Heard about this on the news this morning. Surprise to me |
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