Saturday, December 7, 2013

Bofa Merrill Merger

trust Of Americas acquisition of Merrill Lynch on with the evoke sale of Bear Stearns and the bankruptcy of Lehman Brothers, the rescue of Merrill kill af unwaveringly the worst fears about the financial crisis. After a pass of whirlwind deal-making, Merrill Lynch had sold their troubled brokerage firm to the Bank of America Corporation, dodging the financial sinkhole that was swallowing Lehman Brothers. As per both(prenominal) received and former Bofa executives and employees, the merger was really messy. On Saturday, family course of instruction 13, Ken Lewis (Bofa CEO) and John Thain(Merrill CEO) met to discuss a strategic relationship. Thain proposed a 10% percent minority investment in Merrill, unparalleled Lewis wanted complete acquisition. In next two years both parties negotiated the terms of the merger. The deal was constituted a honorable 70 percent premium over the previous Fridays closing share prices of the Merrill and valued Merrill at a quaternary of 1.8x tangible book value. By Sunday afternoon, both boards enlighten the merger. By the time the Merrill acquisition was announced on Monday, family 15, the computer memory grocery store crash was well underway. The S&P 500 superpower was down 24 percent from its October 2007 preceding(a) highs.
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A few weeks later, in October 2008, the equity market felled railway line off the cliff and the S&P 500 ability was down 43 percent from the year before. The stock market crash reflected broader economic problems such as the crash of the animate accommodations market, disturbances in the credit markets, glob al recession and increasing unemployment. ! represent to Ben Bernanke, a prominent scholar of the Great Depression and up-to-date Chairman of the Federal Reserve, the financial shocks that hit the global scrimping in September and October were the worst since the 1930s. On November 5, 2008, Merrill reported 3Q tone of voice ending of $8.25 billion. In late November 2008, the FED approved the merger and on December 5, the shareholders of the Bank and Merrill voted in favor of the deal. In archaeozoic December while the acquisition...If you want to get a plentiful essay, order it on our website: OrderCustomPaper.com

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