Bank of America to buy Merrill Lynch for $29 a share

September 14, 2008 by · Leave a Comment
Filed under: Industry News 

That was quick, it looks like they needed to move quickly.  I don’t want to think about how the market will react if two investment banks went belly-up this week.  $44 billion much less that what Merrill Lynch was worth last year of well over $150 billion dollars.

Release:

Bank of America Corp will acquire Merrill Lynch & Co Inc for $29 a share, a deal that will give the bank the world’s largest brokerage and a sizable investment bank, the Wall Street Journal reported on Sunday

The deal comes as bankers and regulators met in New York to figure out whether to rescue Lehman Brothers Holdings Inc, and if so, how. Those talks seemed increasingly likely to result in Lehman’s liquidation.

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Merrill Lynch Said to Be in Merger Talks With Bank of America (BofA)

September 14, 2008 by · Leave a Comment
Filed under: Industry News 

This situation is becoming more acute as we proceed.  We have a general situation that has a flight of capital to safer alternatives and a contraction of credit in an inflationary environment.  There are many more hidden surprises that will be brought to light during the next few years.  Hopefully the market will continue to be somewhat orderly manner.

Statement:

Merrill Lynch & Co., the third- biggest U.S. securities firm, is in merger talks with Bank of America Corp., people with knowledge of the negotiations said.

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