What Is Merrill Lynch & Co.?

Merrill Lynch & Co. is the former name of a prominent Wall Street investment firm. Since its acquisition by 澳洲幸运5官方开奖结果体彩网:Bank of America (BAC) in 2009, it has become known simply as “Merrill” and operates as a 澳洲幸运5官方开奖结果体彩网:wealth management division of Bank of America.

Founded by Charles E. Merrill in 1914, Merrill Lynch & Co. has long been one of the American financial sector's iconic institutions.

Understanding Merrill Lynch & Co.

Today, Merrill Lynch & Co. is headquartered at 250 Vesey Street in Manhattan, New York. Part of Bank of America, the firm holds 澳洲幸运5官方开奖结果体彩网:assets under management (AUM) of over $2.75 trillion and employs over 19,000 financial advisors.

While today it is focused on its wealth management business, Merrill Lynch & Co. is recognized for its 澳洲幸运5官方开奖结果体彩网:investment banking activities. In June 1971, Merrill Lynch & Co. completed its 澳洲幸运5官方开奖结果体彩网:initial public offering (IPO) and began trading on the 澳洲幸运5官方开奖结果体彩网:New York Stock Exchange (NYSE).

During the early 2000s, Merrill Lynch & Co. became a leader in the market for 澳洲幸运5官方🔥开奖结果体彩网:mortgage-backed collateralized debt obl💧igations (CDOs) followin💎g its acquisition of the subprime lending firm First Franklin Financial in 2006.𒁏 

Bank of America and Merrill Lynch & Co.

The company became the subject of widespread concern during the 2007 to 2008 financial crisis. In November 2007, Merrill Lynch & Co. announced billions in losses related to its portfolio of subprime mortgages and related derivative products. Following the termination of its 澳洲幸运5官方开奖结果体彩网:chief executive officer (CEO), the company began selling company assets in a bid to maintain its solvency amidst 𒈔speculation that it was on the verge of collapse.

In September 2008, Bank of America proposed a takeover of Merrill Lynch & Co. with an offer value of over $40 billion. This takeover offer, which represented a premium of over 70% relative to the company’s then-depressed market price, was accepted shortly thereafter, and 澳洲幸运5官方开奖结果体彩网:Bank of America ultimatelyღ acquired Merrill Lynch for a $50 billion all stock transaction.

Merrill Lynch Changes Due to Digitalization

According to Financial Planning, the company plans to cut payouts to its advisors that manage small account holders in 2021 in an effort to maintain stability. Advisors will not receiv༺e a payout for production credits generated in households under $250,000.

This change echoes a trend among the biggest brokerage firms, which are encouraging advisors to cater to larger clients and move smaller accounts to 澳洲幸运5官方开奖结果体彩网:robo-advisors or self-directed platforms.

This action is a reflection of the digital transformation that has occurred in the fintech sector. A senior Merrill executive stated: “That [shift] really reflects where our business is today and where it is going.”