MetaFilter posts tagged with Merrill

Deals of the Day

SeizeTheDay — Thu, 22 Jan 2009 17:39:09 -0800

House Financial Services Committee Chairman Barney Frank gave a bank, whose capital ratio equaled only 1.88% of assets at the bank, versus a desired level of about 6%, TARP money after heavy lobbying. Frank inserted into the bill a provision to give special consideration to banks that had less than $1 billion of assets, had been well-capitalized as of June 30, served low- and moderate-income areas, and had taken a capital hit in the federal seizure of Fannie Mae and Freddie Mac. (WSJ link) In other news, Merrill disclosed compensation and benefits expenses of $15 billion for 2008, down 6 percent from 2007. That number includes salaries, benefits, retirement payments, commissions for financial advisers and severance for laid-off employees. Bank of America, which has four times as many employees, reported $18.4 billion in personnel expenses in 2008, down slightly from 2007. ~ Charlotte Observer Merrill, through John Thain, former CEO of Merrill and who recently resigned from BofA (this morning), paid this bonus to his employees in December as opposed to January (a highly unorthodox move), just prior to the deal's consummation (as he was still CEO). Meanwhile, BofA, in a memo earlier this month, Lewis said the bank has “significantly reduced the targets for yearend compensation,” with higher-ranking employees taking the bigger reductions. Lewis has recommended that he and his top reports not receive bonuses for 2008. In other news, regional banks, once thought to be spared from the worst credit losses, have shown mixed results.

Brokergeddon.

eriko — Sun, 14 Sep 2008 17:39:18 -0800

Lehman Brothers files for liquidation. After an all weekend emergency meeting at the New York Fed, no rescue, and LEH is gone. AIG announcing restructuring tomorrow. Bank of America in merger talks with Merrill Lynch, offering to buy the firm outright at $29/share, which values the 94 year old firm at a paltry $40 billion. The futures market say that stocks are not happy.

Big Business as Usual.

fold_and_mutilate — Wed, 07 May 2003 12:33:52 -0800

Big Business As Usual. "In announcing their record settlement with 10 Wall Street firms accused of misleading investors with bogus recommendations, [the Securities and Exchange Commission] also released new e-mail records showing stock experts chortling about how they were making out like bandits at the expense of the average investor", and revealed troubling insights into the way Wall Street really works: "Merrill Lynch initiated coverage of LFMN on September 28, 2000 with a 2-1 [10-20% appreciation forecast short term, 20% appreciation forecast long term], when LFMN traded at $22.69. At that time, Merrill Lynch was pursuing an investment banking relationship with LFMN. After Merrill Lynch initiated research coverage, LFMN's price declined to the....$3-5 range in December. On December 4, 2000, Blodget e-mailed a fellow analyst,'LFMN at $4. I can't believe what a POS [piece of shit] that thing is. Shame on me/us for giving them any benefit of doubt.' Merrill Lynch's research report on LFMN dated December 21, 2000, [reiterates] a 2-1 rating..."
And the "record settlement" with these common swindlers in three piece business suits from our brave SEC? For Wall Street, Fines Are A Day's Pay.