A little more news from the Bank of Amerillwide front lines. Apparently Candace Browning, president of Merrill Lynch Global Research, gave a small update earlier to her employees regarding integration plans. Equity Research will be among the first groups to be integrated, with the combined entity remaining at its current size, and the previously reported layoffs coming in the next two weeks (no word on packages). Sales, trading, and banking will not be integrated until next year.
Earlier: Layoffs Watch '08: MER, BAC, But Mostly MER
Posted by guest , Dec 02, 2008 1:21PM
Why doesn't BAC just leave ML alone and have it operate as a subsidiary, thereby avoiding the destruction of an already tarnished brand by giving it a generic bank name? I can just imagine some stellar ML associate getting bossed around by a retail BAC guy. I can think of no lamer name than "Bank of America." Plus, it makes it sound like our central bank.
Posted by guest , Dec 02, 2008 1:22PM
First (to be integerated)
Posted by guest , Dec 02, 2008 1:23PM
@1 because the only way the 'merger' works and ML stays out of bankruptcy is through a ton of cost savings.
Posted by guest , Dec 02, 2008 1:25PM
@1. I completely agree! I'm a financial consultant at MER and was forced to take a (41%) pay cut from $1.2M to $0.85. This is an outrage!
Yes, I will stay at BAC as there is no place else to go, but I've lost my model swedish girlfriend, my limo driver, and had to de-leverage (read: sell) my timeshare in Vail.
Now, I'm taking orders from a guy who used to manage a region of branches. The idea of innovation at BAC was flat screen tvs in their lobbies tied to CNN! AHHHHHH!!!
I want to go back to the days of 30:1 leverage! Prudence sux!! Un-freaking-believable!!
Posted by guest , Dec 02, 2008 1:26PM
@3: I suppose.
@2: You Fail.
Posted by guest , Dec 02, 2008 1:30PM
@4: Insecure about lifelong BAC career.
Posted by guest , Dec 02, 2008 1:31PM
I call bs on #4. You posted the same "pay cut" figures several times over. The "thundering herd" works on commission while you're implying that your pay was somehow not only guaranteed but capped and now lowered...
Posted by Lowly Assistant , Dec 02, 2008 1:31PM
Correct me if I'm wrong, but I thought the deal prevented BAC from stripping a good amount of MER's autonomy. I thought they were keeping the name, keeping a majority of the employees, and basically being a branch (no pun intended) of BAC. I didn't think anyone was "reporting" to BAC peeps directly.
Posted by Anal_yst , Dec 02, 2008 1:31PM
Resistance is Futile
--Locutus of Borg
Posted by guest , Dec 02, 2008 1:54PM
If any of you knew what you were talking about you'd have seen that the majority of upper management appointments have been Merrill executives on the Investment side of the business. BAC will do what they do best, banking, and MER will serve as the investment arm of the organization. I'm also willing to speculate that the Merrill name will be maintained as US Trust was perserved after that acquisition.
Posted by guest , Dec 02, 2008 2:13PM
I've been hearing that there will be cuts across the board. Now, of course they'll focus on where BofA seems to already be establihed and therefore those ML employees with be outta luck. As for the equity side- hold on to your chairs. As far as I have been able to hear- it's not going to happen as quickly as rumors have been flying. Some traders have already been let go (with pretty decent packages) but luckly for us, BofA isn't as established in that field. Meaning, it's going to take a while to intergrate the two groups. Don't think you've escaped the cut just because you lasted till year end. You've just been given a LITTLE more time.
Posted by guest , Dec 02, 2008 2:14PM
@4 You work for Wachovia
Posted by guest , Dec 02, 2008 2:22PM
does "combined entity remaining at its current size" mean no layoffs at all Research? Hard to imagine that since there would be great overlap in Research middle mgt, analysts, etc...
Posted by guest , Dec 02, 2008 2:23PM
YOU SHALL NOT PASS!!!!!!!!!
Posted by guest , Dec 02, 2008 2:30PM
@4 BS. If you were a FC making that much, you would have doubled your income in retention bonus this year. Regardless, whatever you make is not bad for answering the phone.
Posted by guest , Dec 02, 2008 2:32PM
#4 is full of crap. If you are real, you should be giving Keny L a reach around for saving your firm that you all essentially ran into the ground. MER was never a first rate IB, just had a good retail brokerage arm. LIke Michael Lewis described you, MER is the fat kid on the playgrouund just happy to be there.
Posted by guest , Dec 02, 2008 2:58PM
#4 - How does the math work? $1.2 to $.85 is down 41%?
Posted by guest , Dec 02, 2008 2:59PM
Investment Banking, S&T, and Research will all be combined from both firms under the "Banc of America Securities" banner.
Wealth Management and Private Client will remain as part of "Merrill Lynch Wealth Management" since that name still carries cache. BofA doesn't have a strong FA platform, so what little they have will get integrated under the ML banner.
ML never had retail branches, so that part of the newco will remain untouched.
All of this will be housed under the parent company "Bank of America" operating out of Charlotte, but the firm's main corporate finance groups will be based out of NYC.
Posted by guest , Dec 02, 2008 3:04PM
@13 They'll cut half of the combined group to stay at the current (pre-merge) size.
(1+1)/2 = 1
Posted by guest , Dec 02, 2008 3:19PM
#4 was obviously joking around
Posted by guest , Dec 02, 2008 5:23PM
#16 is a complete dolt. Have you ever worked for an IB or are you just a Gasbag protege'?
Posted by guest , Dec 02, 2008 5:24PM
#16 is a complete dolt. Have you ever worked for an IB or are you just a Gasbag protege'?
Posted by guest , Dec 02, 2008 5:49PM
It is not entirely clear but it should be obvious. Kenny Boy is only interested in the wealth management group. I imagine that sales and trading, and eventually Ibanking will be tossed (sales and trading) or sold (Ibanking). If you are in the later two groups you better join the Fed soup line.
PS If BOA actually pays the $28-29/share for Merrill then they should be the ones that are being criticized. This gentlemen is really the swindle of the century. As the markets show this Mer is worth about 1/3 this acquisition price.
Posted by guest , Dec 02, 2008 9:18PM
#18 is probably right, as that would make sense. Except for the "ML never had retail branches" part.
Posted by guest , Dec 02, 2008 11:09PM
@23 It is an all stock acquisition. Exchange ratio is 0.8595 BAC shares per MER Share. Seeing as BAC is now trading at $14.37 a share, that equates to $12.35 consideration per MER share, not $28-29.
Posted by guest , Dec 02, 2008 11:38PM
@1 you are beyond stupid.
@ 23 you got ruled.