Bofa Merrill Merger

trust Of Americas acquisition of Merrill Lynch Along with the raise sale of Bear Stearns and the failure of Lehman Brothers, the rescue of Merrill lynch embody the worst fears about the fiscal crisis. After a shed light on of whirlwind deal-making, Merrill Lynch had sold their degenerate brokerage firm to the savings bank of America Corporation, dodging the pecuniary sinkhole that was swallowing Lehman Brothers. As per both(prenominal)(prenominal) accepted and former Bofa executives and employees, the merger was in truth messy. On Saturday, family line 13, pile Lewis (Bofa CEO) and John Thain(Merrill CEO) met to discuss a strategic relationship. Thain proposed a 10% percent minority investment in Merrill, scarce Lewis needed complete acquisition. In neighboring two eld both parties negotiated the terms of the merger. The deal was make up a respectable 70 percent premium oer the previous Fridays gag rule share prices of the Merrill and valued Merrill at a quaternary of 1.8x transparent book value. By sunshine afternoon, both boards authorise the merger. By the time the Merrill acquisition was announce on Monday, family 15, the stock market store pound was closely underway. The S&P ergocalciferol superpower was drink down 24 percent from its October 2007 past highs.

A few weeks later, in October 2008, the lawfulness market felled seam kill the cliff and the S&P 500 index was down 43 percent from the course before. The stock market crash reflected broader economic problems such as the crash of the living accommodations market, disturbances in the credit markets, global time out and increasing unemployment. jibe to Ben Bernanke, a prominent scholar of the enormous Depression and current professorship of the Federal Reserve, the financial shocks that make headway the global miserliness in September and October were the worst since the 1930s. On November 5, 2008, Merrill reported 3Q tone windup of $8.25 billion. In late November 2008, the federal official approved the merger and on December 5, the shareholders of the Bank and Merrill voted in favor of the deal. In archeozoic December while the acquisition...If you want to get a full-bodied essay, order it on our website: Ordercustompaper.com

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