Merrill Lynch sold to Bank of America

Merrill Lynch, has been brought out by Bank of America, the Wall Street Investment Bank have managed to secure its future in a $44 billion deal. Whilst, Merrill Lynch’s smaller rival Lehman Brothers did not manage to secure a deal over the weekend and has had to file for bankruptcy.

It is understood that Merrill Lynch has been sold for around $29 a share, this share price is much higher than the $17.05 that Merrill Lynch stock closed at on Friday evening, but much lower than the $97 share price they fetched in January 2007. Merrill Lynch which has been pestered by questions over its mortgage-backed securities, protected by Bank of America’s substantial credit card, current account and lending businesses.

Although Lehman Brothers possible collapse has taken all the attention in London and New York away from Merrill Lynch. Bankers in both of London’s and New York’s financial centres were told to return to work on Sunday, enabling them to calculate their firm’s exposure and losses to a possible failed Lehman Brothers.

Lehman, were left in a very vulnerable position on Sunday evening, its shares have fallen about 94 percent over the year, as employees of Lehman’s New York headquarters were seen removing their belongings from the building, bankruptcy specialist were called in over the weekend by Lehman in the event other funding routes failed.

Read the full article in the times