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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.
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.
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.
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.
Lots of jobs will be consolidated. Corporate finance, investment banking, and of course, trading.
One less primary dealer for the Fed... 2 counting Lehman.
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?
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.
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.
Seems like a very smart move to me. Makes BofA the largest brokerage in the world now.
"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."
Heard about this on the news this morning. Surprise to me
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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.
