BAC Buying MER!
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Both are such completely different cultures. I am interested to see how this works.
What are people's thoughts on money markets? In the past brokerage firms have bailed these out to keep NAV at $1.00 share, but technically they can go below this. Next thing to go?
Financially? I believe they have nothing in it. They were just involved in the "discussions."[/quote][quote=Rugby]Anybody know what was the FED’s role in the MER BofA deal?
Hmm... I doubt that... given they MER would have been trading at $10- $12 this morning on LEH BK. Why did BAC have to buy them for $29 a same on same day as LEH failed? Wouldn't it better for BAC shareholders to wait a few days?
IMO- Fed decided they couldn't let them both go down at this time. More FED intervention = this is not over yet.
Bank failures in the 80's were 2700 plus, we'll survive this too! Don't miss the bottom!Its not as bad as it seems…what 10-15 banks have gone under and expecting another 100 or so to go under??? Thats a 1000 less than in the 80’s. The markets will be fine the economy will be fine. Not the first time this crap has happened and wont be the last. Looks like it is going to be a exciting Monday, time to call on all my Merrill prospects!!
[quote=iceco1d]Definitely good points Rugby…I’m just going on “publicly available information.”[/quote]
Listening to Ken Lewis press conference…He says no FED push or help…
I don't know how much I believe anything John Thain says and since he's sitting next to Ken Lewis, I don't know about him either. I mean even with proper due diligence, they made this deal within 48 hours? Hopefully they know what they're doing. From the advisors I've talked to at MER, it sounds like a lot of them will be looking to leave. They don't have much faith in what the rententions will look like. They also feel lied to by Thain...big time, and are worried they will lose some clients. Have any of you MER guys started receiving calls from clients?[quote=iceco1d]Definitely good points Rugby…I’m just going on “publicly available information.”[/quote]
Listening to Ken Lewis press conference…He says no FED push or help…
Mer and BAC have been in discussions previously so it wasnt a blind deal. MER president pushed Thain to call Ken Lewis Saturday about the deal. Morgan was contacted by Mer but they didnt have enough time to do the due diligence to close the deal before today. Thain isnt exactly making out like a bandit in this deal, something like 9 mill he will get. The question is where does Thain go from here when the deal is done? Back to Goldman or over to MS or JPM ?
I don't know how much I believe anything John Thain says and since he's sitting next to Ken Lewis, I don't know about him either. I mean even with proper due diligence, they made this deal within 48 hours? Hopefully they know what they're doing. From the advisors I've talked to at MER, it sounds like a lot of them will be looking to leave. They don't have much faith in what the rententions will look like. They also feel lied to by Thain...big time, and are worried they will lose some clients. Have any of you MER guys started receiving calls from clients?[/quote] Snags, good job. You got a quote by Reg Reps in their lead article on the Merrill sale![quote=Rugby] [quote=iceco1d]Definitely good points Rugby…I’m just going on “publicly available information.”[/quote]
Listening to Ken Lewis press conference…He says no FED push or help…
I don't know how much I believe anything John Thain says and since he's sitting next to Ken Lewis, I don't know about him either. I mean even with proper due diligence, they made this deal within 48 hours? Hopefully they know what they're doing. From the advisors I've talked to at MER, it sounds like a lot of them will be looking to leave. They don't have much faith in what the rententions will look like. They also feel lied to by Thain...big time, and are worried they will lose some clients. Have any of you MER guys started receiving calls from clients?[/quote] Snags, good job. You got a quote by Reg Reps in their lead article on the Merrill sale![/quote] Whoa. They actually read this stuff? That's funny.[quote=snaggletooth][quote=Rugby] [quote=iceco1d]Definitely good points Rugby…I’m just going on “publicly available information.”[/quote]
Listening to Ken Lewis press conference…He says no FED push or help…
I just got off the phone with a client I share with a Merrill Broker and he’s looking at consolidating here. He asked me when the best time to consolidate the account would be and of course, I told him now. Certainly, there’s bias on my side, but he understood the logic which is this: The current market gives us lots of opportunity to make changes in a client’s portfolio with considerably reduced tax liabilities. This client, in fact, will actually have a tax benefit, due to some poor investments, oddly enough, in his bond portfolio. He’s too young to wait for death puts and in light of what’s happened with LEH, I’m not inclined to recommend that he hold long GM paper when there are plenty of bargains in the market right now.
His reason for leaving? Mostly no contact from his broker after he's read all the recent negative headlines about various Wall Street firms. Fair or not, he's not feeling the love. I've been on the phone all day and this was probably my most productive call.I’m curious how it will all shake out. The most important question is whether Merrill advisors will be allowed to wear BAC polo shirts on Fridays?
We had a Bank of America management call earlier today. Of course, they showed the false and over-the-top excitement. However, what I got out of it was: 1. We will be moving to the Merrill platform (not a bad thing), 2. They will be tricking the Merrill brokers into staying with our CM model.
I would guess that the final B of A brokerage will look similar to Wachovia's. There will be different "channels" for the bank and wirehouse. I can't imagine trying to cram a $2 million Merrill broker into a branch and having them do teller training. Deal is supposed to close Q1 2009.I must say, you MER guys are making out very well compared to what your fate would’ve been most likely this week.
I'd rather have $29/share and plans to be with BAC than nothing.Looks like Bob Bagby sold us (AGE)at the top in retrospect lol! Maybe he was smarter than we gave him credit for! Good luck w BOA Merrill Guys and Gals.
BAC should discount the retail brokerage assets they think they will acquire by 50%. All top Merrill advisors will go independent before they go to Banc of Amigo.
Merrill brokers will love the layered bank management cutting comp, annualizing payout, basically scuttling their business. It is going to be a delicious stew of arbitration battles for the next 5 years!!!!
Ha Ha Haaaaaaaahahaahahahaahaaha!!!!!
Bank failures in the 80's were 2700 plus, we'll survive this too! Don't miss the bottom! [/quote] Get on the same page! Lehman is the biggest BK in HISTORY....ML would have been a BK without the forced buyout.. everything is OK.....yeah right.[quote=Eyetattoo]Its not as bad as it seems…what 10-15 banks have gone under and expecting another 100 or so to go under??? Thats a 1000 less than in the 80’s. The markets will be fine the economy will be fine. Not the first time this crap has happened and wont be the last. Looks like it is going to be a exciting Monday, time to call on all my Merrill prospects!!
I agree the rate of “regretted attrition” at MER will be higher than BAC hopes/expects, but it is certainly nothing to celebrate or laugh at. Good luck to the MER and LEH folks…tough decisions await them.
BAC with the exception of retail banks has never been able to integrate another organization. US Trust has not worked out well, Fleet was a disaster, they went from #1 in Credit Cards when they bought BankAmerica of SanFran to # 7 2 years later. They bought MBNA at the top and have just raised rates which basically has caused adverse selection (insurance term) which will eventually show in the increasing charge offs for the CC business. BofA is all about positive control. They run the business on a spreadsheet and that is all they can understand.
However, this day has come to them on a silver platter. MER had no choice. Once LEH’s toxic paper is priced it will establish a price for all the CDS market, at least for a time. Then, MER would have had to re-price and possibly unwind deals they did previously placing them in the same spot LEH was this week end, just a few weeks from now. Thain acted as any good general would when his forces face insurmountable odds. He thought of the troops first, himself second. He will not find the same ideal nor quarter with BAC. Lewis in all of his smug Napoleoness today spells trouble for my friends at MER. The first to go will be the multiple layers of 3rd tier management at BAI. Eventually though, maybe within a couple of years, the MER Rep will feel the hand of lord Vader squeezing their neck and will find the independent channel waiting.
BACFA, can you tell me more about the B of A “CM Model”? I am a veteran ML FA. Today’s announcement was sad but necessary and we made it through a brutal market day with an up day in our stock (albeit a mere penny up) and a firm that will now clearly survive the mess. I am curious to hear what our new platform will be like (if any changes), and our management has told us absolutely nothing. And no, I have no intention of doing anything remotely related to bank branch work.