The merger between merrill lynch and bank of america was sold to us as a marriage made in heaven that would save the financial system. Hubris, the fall of merrill lynch, and the nearcollapse of bank of america. 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. 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.
Greed, hubris, the fall of merrill lynch, and the nearcollapse of bank of america kindle edition by farrell, greg. Download it once and read it on your kindle device, pc, phones or tablets. Mar 03, 2009 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 all of us, the taxpayers, in picking up the pieces. Wsjs deal journal lead writer heidi moore says the bank of americamerrill lynch deal is setting a record for mergerintegration disaster. Merrill lynch on monday rushed into an agreement to be acquired by bank of. Bank of americas generosity allowed merrill to dodge a bullet, as it was just days. 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. It was subsequently approved by the shareholders of bank of america and merrill lynch on december 5, 2008. Details of the terms under discussion werent immediately clear but merrill s. In this guest author blog farrell shares how his book came to be and if you. Bank of america buys merrill lynch creating unique financial. The acquisition is expected to be accretive to earnings by 2010. Following the latest news that former merrill lynch ceo.
Greed, hubris, the fall of merrill lynch, and the nearcollapse of bank of america. Jul 15, 2009 it was clear that if the merger proceeded, and the combined bank of america merrill lynch entity needed financial support, the government would work to provide such appropriate and necessary. Bank of america buys merrill lynch creating unique. Merrill lynch for wealth management in 2008 and bank of america merrill lynch for investment banking in. 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. Bank of america finishes merger of merrill lynch into. New book reveals why bofa general counsel was fired. 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. Use features like bookmarks, note taking and highlighting while reading crash of the titans. Jan 19, 2020 who are bank of americas main competitors. Most industry analysts said the merger represented a good fit, with few overlaps between the two institutions.
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. 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 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. 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. Greed, hubris, the fall of merrill lynch and the nearcollapse of bank of america, the latest financialcrisis. Prior to bofas acquisition, merrill lynch had hired john thain as its ceo to save the. This verbose title is a new book by greg farrell, who takes readers through the life of banking general counsel tim. Case study of the bank of america and merrill lynch merger by. Bank of america completes merrill lynch purchase bank of. Case study of the bank of america and merrill lynch merger. A new book detailing the fall of merrill lynch sheds some interesting light on how swiftly things can come crashing down. Bank of america merrill lynch acquisition during global financial. Leaving aside the question of whether lewiss failure to publicly.
More gossip from the bank of americamerrill lynch merger. Merrill lynch takeover by bank of america seven pillars. 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. Bank of america, wells close mergers as banking transforms. Introduction bank of america is one of the worlds largest financial institutions, serving individual consumers, smalland middlemarket businesses and large corporations with a full range of banking, investing, asset management and other. Investment banking project on bank of america merrill lynch. Anyway, i think the best moment in this book is when one of the directors. Paulson to explains the bank of americamerrill deal jul. Oct 22, 2011 bank of america and merrill lynch bank of america completed the acquisition of merrill lynch on 1109. 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. Under terms of the agreement, shareholders of merrill lynch received.
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. Bank of america may merge merrill lynch with parent the new. Bank of america, merrill lynch in merger talks wsj. Merrill lynch merges with bank of america telegraph. Why the merrill bank of america deal has been a disaster. Bank of america is still trying to get its arms around the big acquisitions it did amid the financial crisis. Now he has ditched john thain and is struggling to make the deal work. Why bofas decision to merge merrill operations is a good. Shareholder profit, public good, and the hobsons choice during a national crisis, 17 geo. Bank of america takeover to end independent merrill reuters. Under terms of the transaction, bank of america would exchange. Divorce bank of america style ken lewis was happy as a bridegroom when he swooped in to buy merrill lynch. This is a case study of the bank of america and merrill lynch merger.
O n one level, the merger between bank of america and merrill lynch is a simple story of executive hubris and cowardice. 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. The book itself is a worthy history of merrill lynchs last 18 months as independent company and its rocky merger with bank of america. On the surface, bank of america thought the merger was a good idea and a good business deal to pursue. Bank of america may merge merrill lynch with parent the. Frontline examines the bank of america merrill lynch merger. Greed, hubris, the fall of merrill lynch and the near collapse of bank of america. Bank of america merrill lynch project on investment banking submitted by pankaj gaurav, imt hyderabad 2. 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.
The collapse of merill lynch now told in crash of the titans. 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. Nov 10, 2010 a new book detailing the fall of merrill lynch sheds some interesting light on how swiftly things can come crashing down. As is indicated by the subtitle, no one really comes off well in crash of the titans.
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. Aug 16, 20 bank of america is still trying to get its arms around the big acquisitions it did amid the financial crisis. 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. Bank of america and merrill lynch bank of america completed the acquisition of merrill lynch on 1109. What exactly happened in the weeks leading up to the merger. Bank of america said it agreed to buy merrill lynch in an allstock deal worth. It is not to be confused with merrill, the wealth management division of bank of america. In defense of the bank of america merrill lynch deal. 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. In late 2008, bank of america and merrill lynch were in negotiations for a business deal.
Buy books, tools, case studies, and articles on leadership, strategy, innovation, and other business and management topics. New york sues bank of america over merrill lynch merger. Bank of america and merrill lynch merger house oversight committee 20090711 product 2869651dvd house committee on government reform and oversight. Merrill lynch for wealth management in 2008 and bank of america merrill lynch for investment banking in 2009. Essay about bank of america and merrill lynch 1162 words. 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. Details of the terms under discussion werent immediately clear but merrills. Jan 22, 2009 wsjs deal journal lead writer heidi moore says the bank of america merrill lynch deal is setting a record for merger integration disaster. Bank of america finishes merger of merrill lynch into parent. Bofa securities, previously bank of america merrill lynch baml, is an american multinational investment bank division under the auspices of bank of america.
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. 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. 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. 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. Merrill came under pressure to find a merger partner came after its. Later that day, merrill lynch was sold to bank of america for 0. Along with bofa securities, the investment banking arm, both firms engage in prime brokerage and brokerdealer activities. Bank of america acquired merrill lynch in late 2008 during the financial crisis. It shows the management to be selfcentered, myopic and completely incompetent.
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