COM100
Professor Selnick
May 6, 2009
Divorce: bank building of America Style
I. minimise of Merrill Lynch/ coast of America
a.Merrill Lynch was established in 1914 by two prominent New York bankers. It rose to international jut in the late 60s early 70s through its New York trading desk. Huge pretender in CDO market of the early 2000s, fired CEO Stanley ONeal in 2007 after discovering $8 billion loss.
i.Hired big board CEO and former Goldman Sachs president John Thain to succeed ONeal. Thain began by purging the Merrill Lynch board of ONeal ally and installed many of his former NYSE and Goldman Sachs colleagues to high paying administrator jobs. From 2007 to 2008 John Thain and the new Merrill sold billions in toxic assets unless a multibillion dollar loss was still to come in 2008.
ii.Thain assembled a finance dream team which consisted of executives from other study firms, most of them former colleagues of Thain. Thomas Montag was installed as Merrills master(prenominal) of sales and trading. Thain managed to lure Peter Kraus from Goldman Sachs to head Merrill Lynchs strategic planning sector, and received a $25 one million million million guaranteed pay package.
b.Bank of America was founded in San Francisco in 1904. Grew into a national leader in branching banking throughout the century.
Bank of America developed into a penny-and-dime organization when Kenneth D. Lewis became CEO of Bank of America. He established a no-nonsense, ask questions root expectation in the corporate structure at Bank of America, which was at a time run far from the glamour of NYC, in Charlotte, North Carolina.
i.Bought attribute card giant MBNA, expanding its national business. Bank of America as well purchased US Trust, a prominent bank at that time. Lewis first mistake came with their 2007 purchase of Countrywide Financial, a major fake in the subprime lending game of the early 2000s.
ii.During 2008, huge losses began to show on Bank of Americas equipoise sheet, losses linked to the...If you want to get a amply essay, order it on our website: Orderessay
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