SOLUTION: BUS 499 Grantham University Bank of Americas Acquisition of Merrill Lynch Case Analysis


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Running Head: BANK OF AMERICA’S ACQUISITION OF MERRILL LYNCH

Bank of America’s Acquisition of Merrill Lynch
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BANK OF AMERICA’S ACQUISITION OF MERRILL LYNCH
Bank of America’s Acquisition of Merrill Lynch
Executive Summary
The event reviews the facet of Merrill Lynch of Bank of America’s (BOA) acquirement,
which sediment unformed the top worldwide influence skillful-treatment resolutes. Merrill Lynch had almost
collapsed during the whole financial situation. Several siege banks such as Merrill
Lynch during the sub-prime economic contingency of 2007 encountered indicative losses from the
rising habit to miserable financial circumstances. Lehman Brothers in 2008 were under
critical liquidity challenges questioning its continued being. Unformed the deep difficulties,
encountering Merrill Lynch sediment that the CDOs rate was privation, which compelled
Merrill to catalogue all their evaluations.
The increasing of the declines also endangered the continued being of Merrill. The
directors of Lynch Corporation were worried encircling the plummeting divide rate of encircling 36%
worse than the test require of encircling $15 billion because the preceding $26 billion. The
siege directors at Merrill were worried encircling the miserable transrenewal for the rate of the
shares of the hazard resolute. The acclaimed renewal and contemplation were to pace the acquirement
procedure of the resolute through Bank of America. The acquirement policy would obstruct the
liquidity and financial challenges confronting Merrill Lynch in the siege issues.
Statement of the Problem
The deep challenges encountered by the directors of Merrill Lynch interposed fears of
losses united to the representations and warranties brought in familiarity after a while the loan
products and sales of bonds. The percolate in the evaluation of its rate divides having an enormous
challenge that required for the acquirement by BoA (Hearit, 2018). ...

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