Stock Market Watch

Merrill Lynch To Be Dissolved: Bloomberg (BAC)

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Merrill Lynch, which was acquired by Bank of America Corp. (NYSE: BAC) more than four years ago at the height of credit crises, might cease to exist as a legal entity.

According to Bloomberg, company’s regulatory filing on August 2 showed that Bank of America in likely to retain Merrill Lynch brand for its retail brokerage unit and investment banking but the subsidiary will be dissolved by the end of the fiscal fourth quarter.

The 99 year old investment bank’s debt and obligation will be assumed by Bofa, showed the regulatory filings.

Bank of America, which is the nation’s second largest bank in terms of assets, is reorganizing its business after it took over Merrill Lynch in 2009.

Dissolving the subsidiary would help cut Bofa costs significantly and will allow the bank’s CEO Brian T. Moynihan to reach $8 billion cost cutting target, according to Bloomberg.

Commenting over the move, David Hendler, an analyst at CreditSights Inc., said in e-mailed comments, “Less-complex structures would increase the success of resolution planning via living wills in the case of potential worst-case financial distress scenarios.”








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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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