Breaking: Merill Lynch GONE! HoJinx, Where is Our $$$?

Long-term Investment Until Like This?

Merrill Said to Discuss Merger With Bank of America (Update2)

By Jonathan Keehner and Bradley Keoun
Sept. 14 (Bloomberg) -- Merrill Lynch & Co., the third- biggest U.S. securities firm, began merger talks with Bank of America Corp. after its share price fell by more than a third last week, people with knowledge of the negotiations said.
The discussions took place as New York-based Merrill's smaller rival Lehman Brothers Holdings Inc. moved closer to a bankruptcy filing after Bank of America and Barclays Plc abandoned talks to buy the investment bank. Merrill's board was considering a $29 a share offer, the Wall Street Journal reported.
Bank of America, based in Charlotte, North Carolina, has maintained its AA credit rating as other U.S. financial institutions, including Merrill, faced downgrades. Merrill's stock plunged last week after Oppenheimer & Co. analyst Meredith Whitney predicted a $6.87 billion third-quarter loss and investors speculated on Merrill's fate.
``A merger between Merrill and Bank of America is a good idea,'' said Richard Bove, an analyst at Ladenberg Thalmann & Co. in Lutz, Florida. ``If Lehman fails, the next bank to be attacked would be Merrill. They are attempting to forestall that attack by linking with Bank of America.''
``We don't comment on speculation,'' said Bank of America spokesman Bob Stickler. Merrill spokeswoman Jessica Oppenheim declined to comment.
Merrill Chief Executive Officer John Thain was among the Wall Street chiefs who gathered the past three days for a series of meetings at the Federal Reserve Bank of New York to discuss a resolution for Lehman. U.S. Treasury Secretary Henry Paulson and New York Fed President Timothy Geithner summoned the executives to the weekend meetings.
Bank of America representatives skipped the initial sessions because the bank was bidding for Lehman.
Bank of America has rallied 82 percent since reaching a low on July 15. On Sept. 12, the shares climbed 68 cents, or 2.1 percent, to $33.74 in New York Stock Exchange composite trading.
Merrill shares fell 12 percent on Sept. 12 to $17.05, the first close below $20 a share in a decade.
To contact the reporters on this story: Bradley Keoun in New York at [email protected]; Jonathan Keehner in New York at [email protected]
Last Updated: September 14, 2008 19:18 EDT

U.S. Stock Futures Tumble on Concern Lehman to File Bankruptcy

By Allen Wan
Sept. 15 (Bloomberg) -- U.S. stock-index futures tumbled on concern a potential Lehman Brothers Holdings Inc. bankruptcy will add to banks' $514 billion of subprime-related losses.
Lehman, until last week the fourth-largest U.S. securities firm, is preparing a bankruptcy filing after takeover talks with Bank of America Corp. and Barclays Plc collapsed, said a person with direct knowledge of the firm's plans. A final decision hasn't been made, the person said, declining to be identified since the discussions haven't been made public.
Standard & Poor's 500 Index futures expiring in December retreated 29.1 points, or 2.3 percent, to 1,229.4 at 7:37 p.m. in New York, after earlier falling as much as 3.4 percent. The benchmark index for U.S. equities declined 15 percent this year, led by a 28 percent plunge in financial companies.
``The collapse of this deal casts a dark cloud over Wall Street,'' said Frederic Dickson, who helps oversee $25 billion as chief market strategist at D.A. Davidson & Co. in Lake Oswego, Oregon. ``It also sends a message that the government is getting out of the bailout business and makes financial institutions like AIG and WaMu look even more vulnerable.''
American International Group Inc., the largest U.S. insurer, plunged 46 percent last week and Washington Mutual Inc., the country's biggest savings and loan, dropped 36 percent on concern about their financial health.
Emergency Session
Federal Reserve and U.S. Treasury officials met in an emergency session as Barclays, the U.K.'s third-largest bank, abandoned talks to acquire Lehman after failing to win government guarantees against losses. Bank of America Corp. also ended takeover discussions, according to a person with knowledge of the matter. The companies were considered leading candidates to acquire the 158-year-old investment bank after record losses erased 94 percent of its stock value this year.
The dollar fell 0.6 percent to $1.4302 per euro at 6:53 a.m. in Tokyo, from $1.4224 in New York late last week.
Bank of America is in merger discussions with Merrill Lynch & Co., people with knowledge of the negotiations said. Bank of America spokesman Scott Silvestri declined to comment on Merrill.
AIG will announce a restructuring plan tomorrow that may include the sale of assets, the Wall Street Journal said without citing anyone.
As the prospect of a Lehman bankruptcy loomed, banks and brokers held a special trading session for netting derivatives transactions with Lehman, or canceling trades that offset each other. The trades would be canceled if Lehman doesn't file bankruptcy by midnight in New York.
Weekly Decline
Lehman lost three-quarters of its value last week amid signs that the U.S. government may not provide the funding that enabled Bear Stearns Cos. to sell itself and avoid bankruptcy.
``I could see Lehman's shares fall into the Fannie Mae and Freddie Mac range,'' said Dickson. Fannie Mae and Freddie Mac dropped below 75 cents a share after the government announced plans to put the two largest mortgage finance companies under conservatorship.
Washington Mutual may cost taxpayers as much as $24 billion in the event of a U.S. government bailout, Richard Bove, an analyst at Ladenburg Thalmann & Co., said. The federal government may have to provide that much in mortgage guarantees in order to attract a buyer for the Seattle-based bank, Bove said.
``You may get an assisted merger with a limit on how much the private buyer would pay for the bank with the government giving a guarantee for the rest,'' Bove said in an interview with Bloomberg Radio.
Former Federal Reserve Chairman Alan Greenspan said the financial crisis that began with the collapse of the subprime- mortgage market last year ``is probably a once in a century event'' that will lead to the failure of more firms.
The S&P 500 Index rose 0.8 percent to 1,251.70 last week for the first advance since the week ended Aug. 15.
To contact the reporter on this story: Allen Wan in New York at [email protected]
Last Updated: September 14, 2008 19:41 EDT

Ho ching has been saved. this is a miracle. Bofa is paying 25-30 bucks for the stock, which it is at 17 market price now. MEr has been BAILED OUT

imperialarms said:

Ho ching has been saved. this is a miracle. Bofa is paying 25-30 bucks for the stock, which it is at 17 market price now. MEr has been BAILED OUT

Click to expand...

Don't forget, BOA, nearly went bust before!, look back, say 20 years ago!.

DONE DEAL

CNBC just reported that BoA approved the deal to buy MER for $29

imperialarms said:

DONE DEAL

CNBC just reported that BoA approved the deal to buy MER for $29

Click to expand...

Huat Ah !!!!

WTH temasek actually make money on this deal after capital provisions

average price for temasek is 21-ish..

can ho jinx distribute the profits of the merill transaction to sinagporeans next CNY

imperialarms said:

can ho jinx distribute the profits of the merill transaction to sinagporeans next CNY

Click to expand...

Huat Ah~