No matter that the outcome of this investigation, it will be a good for Bank of America. This brings them one step closer to getting closure on this very curious situation. If I was a shareholder, I would be very frustrated to learn about these bonuses that were paid out before the merger. As a taxpayer I am very upset that will let taxpayer money in effect, go towards bonuses at a failed institution.
After this issue is resolved, we need to see a realistic repayment plan for the bailouts that both banks received. They can pay bonuses until they are blue in the face, just pay back the people who backed you up even in you should of had to face the music.
AFP, New York - Bank of America agreed to provide new information about bonus payments made to Merrill Lynch executives just before the bank acquired the troubled Wall Street firm last year, officials said Tuesday.
This just shows more of the opaqueness in our U.S. financial system. When we are looking to gain back trust and confidence, these types of findings are counter-productive but needed to put light on the issue of transparency and doing what is right now what is politically convenient. We still do not know where $2 trillion in loan agreements or where most the money from A.I.G went. These are important questions that should be asked and answered no matter how damaging it is. We have totally bailout out and propped up a bunch of actors that have been liquidated and sold to the highest bidder. Once the truth is known, then and only then will we have the information in hand to make the hard choices and put in place or enforce rules and regulations that will protect the investor and punish the overly greedy.
House Republican staffers said the Federal Reserve tried to control the timing of disclosures of rising losses at Merrill Lynch & Co. in the weeks leading up to its takeover by Bank of America Corp., according to a memo obtained by Bloomberg.
Just what we need is more super-sized banks. Now when BofA gets into trouble we will be talking about how they are “too big to fail”. I thought we passed an act in the 90s that prevented investment and commercial banks to be under one roof? How soon we forget.
Bank of America Corp completed its purchase of Merrill Lynch & Co on Thursday, creating the largest U.S. bank and perhaps one of the biggest challenges yet for longtime Chief Executive Kenneth Lewis.
The closing allows Bank of America to bypass JPMorgan Chase & Co and Citigroup Inc in size, giving it about $2.7 trillion of assets.
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.
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.
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.
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.