Ah, 2009: Heady times at Bank of America, what with Merrill Lynch being dropped (/forced) into their lap and all. Still, it does seem rather a big oversight to have failed to account for the fact that bonds and options, you know, don’t last forever—and then to have missed it for four years and almost $4 billion. Read more »
Tom Brady Shares His Old Resumé [Deadspin]
Time was, if you were a successful broker on Wall Street, your company sent you on trips to mingle with other top producing brokers, at which the only planned activities included playing golf, getting drunk, and falling ass-backward into the pool. Then the financial crisis hit and suddenly firms couldn’t afford the bad press associated with a gaggle of their employees passing out naked on the ninth hole at the Ritz Carlton in Half Moon Bay. Well now they can! Read more »
As many of you will recall, back in 2008, then Bank of America CEO Ken Lewis agreed to buy Merrill Lynch. While it wasn’t a Countrywide-level disaster of an acquisition (i.e. a bomb that’s never stopped going off), it wasn’t Lewis’s best laid plan, which is why he actually tried to get out of the deal at the 11th hour, only to be told by former Fed Chair Hank Paulson that if he wanted to keep his legs, he’d go through with it. The merger didn’t sit right with a large contingent of Merrill brokers, but they chose to go along with it for the greater good. Still, they made a solemn swear to each other that they’d fight even the smallest perceived slight to their brand and five plus years after the deal went through, they’ve kept their word. Read more »
Merrill Lynch Brokers Are Going To Have To Wake Up A Lot Earlier If They Want To List “Recipient Of Circle of Champions” Award On Their LinkedIn ProfilesBy Bess Levin
No longer will any old Joe Shmo be allowed in the club. Read more »
There are a lot of things in the financial industry that you could legitimately get upset about and so it seems sort of wasteful when people go around getting upset about the other things.1 Like: the too-big-to-fail banks have a lot of subsidiaries, which is bad for some reason. Complexity! Opacity! Subsidiaries. I dunno.2
Anyway one of the big ones is going away:
Bank of America Corp., the second-biggest U.S. lender, plans to merge its Merrill Lynch subsidiary into the parent company to reduce complexity and costs.
The move could happen as early as the fourth quarter and means Charlotte, North Carolina-based Bank of America assumes all the investment bank’s obligations and debt, Merrill Lynch said in an Aug. 2 filing. Dissolving the legal entity also ends Merrill Lynch’s need to file separate regulatory disclosures.
It’s true! Read more »