Bank of America buys Merrill Lynch
-
-
- Future_America
- added this
The boards of Bank of America and Merrill Lynch have appproved a roughly $44 billion purchase of the brokerage by the bank, the Wall Street Journal reported on its Web site.
The Journal, citing sources close to the negotiations, reported both boards signed off on the deal Sunday evening.
Charlotte, N.C.-based Bank of America has the most deposits of any U.S. bank, while Merrill Lynch is the world's largest brokerage. A combination of the two would create a global banking giant to rival Citigroup Inc., the biggest U.S. bank in terms of assets.
However, the deal would not come without risks. Merrill Lynch, like many of its Wall Street peers, has been struggling with tight credit markets and billions of dollars in assets tied to mortgages that have plunged in value. Merrill has reported four straight quarterly losses.
And Bank of America's own finances are far from robust. As consumer credit deteriorates, the bank has seen its profits decline, and the company is still in the midst of absorbing the embattled mortgage lender Countrywide Financial, which it acquired in January.
The Journal, citing sources close to the negotiations, reported both boards signed off on the deal Sunday evening.
Charlotte, N.C.-based Bank of America has the most deposits of any U.S. bank, while Merrill Lynch is the world's largest brokerage. A combination of the two would create a global banking giant to rival Citigroup Inc., the biggest U.S. bank in terms of assets.
However, the deal would not come without risks. Merrill Lynch, like many of its Wall Street peers, has been struggling with tight credit markets and billions of dollars in assets tied to mortgages that have plunged in value. Merrill has reported four straight quarterly losses.
And Bank of America's own finances are far from robust. As consumer credit deteriorates, the bank has seen its profits decline, and the company is still in the midst of absorbing the embattled mortgage lender Countrywide Financial, which it acquired in January.
-
-
red3636
-
I really hope that Bank of America dusint end up like any other.
- 3 years ago
-
red3636
