Office Merrill Lynch

Merrill Lynch

Sale of Merrill Lynch became the myth end about omnipotence of investment banks. After all as the buyer the usual commercial retail bank acted. It appeared that similar structures are less susceptible to crisis in comparison with such investment banks, as Merrill Lynch. Though Bank of America too suffered from crisis - its losses made 3 billion dollars. But also sale - yet the end. On December 12 Bank of America reported that will be compelled to dismiss 30-35 thousand employees of Merrill Lynch within three next years. These are 11,4 % of all employees of bank. As counted up the management, the economy from this reduction should make 7 billion annually. Now in Bank of America 247 thousand people work., from them 61 thousand people - the personnel of the former Merrill Lynch.

Merrill Lynch aspired to occupy strong position in quickly growing market of Asia. In 1982 the office in Gongkonge was open, in 1985 he received the status of the regular participant of the Tokyo stock exchange. From next year annual reports of the company were printed not only in English, but also in the Chinese and Japanese languages. The Asian world is very conservative and usually doesn't trust foreigners. But managers of Merrill Lynch managed to agree about the representation even in communistic China. The office in Shanghai was open in 1993. In 1995, having bought the Smith New Court company, the wholesale merchant actions, Merrill Lynch expanded the presence in stock market of the USA even more. But also it is not enough of it: owners of the company, believing in own slogan saying that the market will grow only, continued to open new offices worldwide and to absorb competitors. In 1996-1998 the Australian company Mcintosh and Centaurus, the Thai Phatra Thanakit Securities, the Spanish FC Inversiones Bursatiles, the Canadian Midland Walwyn, English Mercury Asset Management were bought and 33 new representations in Japan are open. It seemed that to successes there will be no end, after all in 1997 the general assets under control of Merrill Lynch exceeded $1 trillion.

Investbank of Merrill Lynch

The Investbank of Merrill Lynch was called in honor of the founders Charles Merrill and Edmund Lynch. Merrill's way to wealth - a typical embodiment of the American dream: from da's dirt in princes. His parents weren't especially provided people. Having sent the son to go into higher education, they couldn't contain it. At first Charles earned additionally to pay study, but money didn't suffice, and it was compelled to leave college. Worked in the newspaper, tried to earn additionally in an amateur baseball team, generally, survived, as was able. In 22 years it was arranged with the courier at Patchogue-Plymouth Mills textile company office in New York. To use the person with incomplete higher education as the messenger - it is a little unreasonable, solved in this firm and began to charge to Charles more qualified work. He aspired to prove that is able to work better than others, and in two years became the director of this company. In 1909 Charles passed to more George H major company. Вurr&Со, trading in paper. The enterprising 24-year-old young man created there new department on management of debts and issue of securities. The successes reached in this firm, allowed Charles to make a modest fortune to start own business. In 1914, at the age of 29 years, it opened the Charles E.Merr_ll&so company. and one year invited as business partner Edmund Lynch later and renamed the company into Merrill Lynch.

Merrill Lynch

Merrill Lynch

It ceased to exist as a separate entity in January 2009.Is the wealth management division of Bank of America. With over 15,000 financial advisors and $2.2 trillion in client assets, it is the world's largest brokerage.

Market timing settlement

Market timing settlement In 2002 Merrill Lynch settled for 10 million civil penalty as a result of improper activities that took place out of the firm's Fort Lee New Jersey office. Three financial advisors, and a fourth who was involved to a lesser degree, placed 12,457 trades for a client Millennium Partners in at least 521 mutual funds and 63 mutual fund sub-accounts of at least 40 variable annuities. Millennium made profits in over half of the funds and fund sub-accounts. In those funds where Millennium made profits, its gains totaled about $60 million. Merrill Lynch failed to reasonably supervise these financial advisers, whose market timing siphoned short-term profits out of mutual funds and harmed long-term investors.

Orange County settlement

Orange County settlement Merrill Lynch settled with Orange County, California, for a massive $400 million to settle accusations that it sold inappropriate and risky investments to former county treasurer Robert Citron. Citron lost $1.69 billion, which forced the county to file for bankruptcy in December 1994. The county sued a dozen or more securities companies, advisors and accountants, but Merrill settled without admitting liability in June 1998. The county was able to recover about $600 million in total, including the $400 million from Merrill.

“Merrill Lynch is a great global franchise and I look forward to working with Ken Lewis and our senior management teams to create what will be the leading financial institution in the world with the combination of these two firms,” Merrill Lynch Chairman and CEO John Thain said in the statement. Strategically, most industry analysts are saying it’s a good fit. If the deal goes according to plan, Bank of America will be able to offer Merrill’s retail brokerage services to its huge customer base. There is not a great deal of overlap between the two companies — Bank of America does have an investment bank already, but it has never been terribly strong. Where there is duplication, however, the combination of the two companies could result in more layoffs. Both Merrill and Bank of America have already cut thousands of investment banking jobs over the past year. And the deal does not come without risks to Bank of America. Merrill Lynch, like many of its Wall Street peers, has been struggling with tight credit markets and billions of dollars in assets tied to mortgages that have plunged in value. Merrill has reported four straight quarterly losses, and its stock has been sliding. Thain and Lewis said on the call that both companies have “nominal” exposure to Lehman Brothers. Officials from the government and various banks met this weekend to discuss what to do about Lehman Brothers. When Bank of America balked at buying Lehman, the government urged it to buy Merrill instead. The deal differs from JPMorgan Chase & Co.’s buyout in March of Bear Stearns Cos. in that Bear Stearns was sold at a steep discount and with financial backing from the Fed. While Merrill Lynch is burdened with soured real estate investments, its financial position is stronger than Bear Stearns’ was.

Merrill Lynch

Bank of America on Monday began adding another slice to its growing financial services empire, buying Merrill Lynch in a $50 billion deal that would create a bank offering everything from fixed-income trading to credit card lending. It will rival Citigroup Inc., the biggest U.S. bank in terms of assets. Bank of America Corp. said early Monday it would acquire Merrill Lynch in an all-stock transaction worth about $50 billion that should lift the uncertainty shrouding Merrill since the start of the credit crisis over a year ago. Charlotte, N.C.-based Bank of America has the most deposits of any U.S. bank, while Merrill Lynch & Co. Inc. is the world’s largest and most widely recognized brokerage. “Acquiring one of the premier wealth management, capital markets, and advisory companies is a great opportunity for our shareholders,” Bank of America Chairman and Chief Executive Officer Ken Lewis said in a statement. “Together, our companies are more valuable because of the synergies in our businesses.” Under terms of the transaction, Bank of America would exchange 0.8595 shares of Bank of America common stock for each Merrill Lynch common share, the statement said. The deal values Merrill at $29 a share. That represents a 70 percent premium over the brokerage’s Friday closing price of $17.05, but well below what Merrill was worth at its peak in early 2007, when its shares traded above $98. Advertise | AdChoices