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 read more 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. Bank of america agreed to pay $29 per share for merrill lynch, which was a 70% premium to what merrill's stock closed at on the previous friday the total price was $50 billion (since it was an all-stock deal, the ultimate price actually turned out to be around $21 billion.
Of the loans packaged into securities by bank of america and companies it later bought from 2004 to 2008, about three-fourths of those that soured were originally issued by countrywide bank of america produced just 4 percent, with merrill lynch accounting for most of the rest.
It was subsequently approved by the shareholders of bank of america and merrill lynch on december 5, 2008 the acquisition was scheduled to be closed on january 1, 2009 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. The merger could come as soon as the fourth quarter since buying merrill lynch at the start of 2009, bank of america has operated it as a subsidiary but a full merger with the parent company would allow bank of america to assume merrill’s obligations and debt, the filing said. Merger is completed, holders of merrill lynch common stock will have a right to receive 08595 of a share of bank of america common stock for each share of merrill lynch common stock held immediately prior to the merger.
As the merger closed, and a new year began, mr thain was prepared to take on a leadership role at bank of america, even though several of his top deputies, longtime merrill leaders, began leaving. John thain, merrill lynch’s chief, left, and bank of america’s chief, kenneth lewis, agreed to a merger in september mr thain was dismissed in january. Bank of america has resolved one of the largest and most embarrassing pieces of litigation related to its merger with merrill lynch in 2008 but the settlement comes with a pretty hefty price tag, since the bank has agreed to pay $243 billion to end the lawsuit.
Bank of america corp, the second-largest us lender by assets, completed the merger of its merrill lynch & co subsidiary into the parent company to simplify the corporate structure the bank assumes the unit’s obligations and debt while keeping the merrill lynch brand, the company said today in a statement.
Merrill lynch wealth management makes available products and services offered by merrill lynch, pierce, fenner & smith incorporated (mlpf&s), a registered broker-dealer and member securities investor protection corporation , and other subsidiaries of bank of america corporation (bofa corp) insurance and annuity products are offered through merrill lynch life agency inc, a licensed insurance agency and wholly owned subsidiary of bofa corp.
Bank of america merrill lynch is the marketing name for the global banking and global markets businesses of bank of america corporation (bac) lending and other commercial banking activities are performed globally by banking affiliates of bac and in australia by bank of america, na australian branch (bana australia. Merrill lynch is a subsidiary company that is entirely owned by bank of america (merrill lynch) prior to the merger, merrill lynch issued debt instruments to a number of companies. Bofa is buying about $44 billion of merrill's common shares , as well as $6 billion of options, convertibles, and restricted stock units bank of america said it expects to achieve $7 billion in pretax expense savings, fully realized by 2012, and expects the deal to be accretive to earnings by 2010.