Merrill Lynch rose to prominence in the 20th century on the strength of its large brokerage network and wealth management services. However, heavy investments in mortgage-backed securities and collateralized debt obligations ahead of the 2008 financial crisis led to massive losses and instability. In September 2008 as the crisis worsened, Bank of America acquired Merrill Lynch for $50 billion in order to bolster its own wealth management business, bringing the once independent firm under new ownership.
Investment banking project on Bank of America -Merrill LynchPankaj Gaurav
• Working model to serve the client
• Integrated operating model
• Lines of businesses
• Activities in global commercial banking
• Investment banking activities
• Details of advisory services in recent Deal in M&A, IPO issue
Investment banking project on Bank of America -Merrill LynchPankaj Gaurav
• Working model to serve the client
• Integrated operating model
• Lines of businesses
• Activities in global commercial banking
• Investment banking activities
• Details of advisory services in recent Deal in M&A, IPO issue
Washington Mutual Bank's Collapse Under An Audit Perspectivehong_nona
This is my MBA project paper of the External Audit course. The project paper was tapped to the hottest topics of the U.S. economic crisis in 2008, three months after the collapse of the biggest U.S. bank institution.
The author incorporated the audit principles in analyzing the root causes of the U.S. economic crisis and how this disaster can be avoided.
On September 15, 2008, Lehman Brothers Holdings Inc filed for bankruptcy. It filed for protection under Chapter 11 of the U.S. Bankruptcy Code with the United States Bankruptcy Court for the Southern District of New York. It filed with $639 billion in assets and $619 billion in debt, Lehman's bankruptcy filing was the largest in history, as its assets far surpassed those of previous bankrupt giants such as WorldCom and Enron. Lehman was the fourth-largest U.S. investment bank at the time of its collapse, with 25,000 employees worldwide.
American International Group, Inc., also known as AIG, is an American multinational finance and insurance corporation with operations in more than 80 countries and jurisdictions. As of December 31, 2016, AIG companies employed 56,400 people.The company operates through three core businesses: General Insurance, Life & Retirement, and a standalone technology-enabled subsidiary
A study on Vijay Mallya Scam Case: Vijay Vittal Mallya, once known to you and me as ‘The King of Good Times’ or also dubbed ‘ The playboy of the East’ was born to the Indian Entrepreneur Vittal Mallya in 1955. Vittal Mallya was largely known for the role played as the director of United Breweries (UB) Group which he achieved at the age of 23. Following his father’s sudden demise Vijay Mallya became chairman of the UB Group.Vijay Mallya was always known for his flamboyant and posh lifestyle. A testament to these were the lavish New Year Parties at his Kingfisher Villa in Goa or the birthday bashes thrown on his luxurious Yacht ‘ The Indian Empress’.
The Virgin Group - Richard Branson Way - Case Study Sharanya Ray
The Virgin Group Case Study - Story of How Richard Branson put The Virgin Brand into a global map, extending it into 400 businesses.
Created during summer Internship on Marketing Management under, Prof. Sameer Mathur, IIM Lucknow.
Washington Mutual Bank's Collapse Under An Audit Perspectivehong_nona
This is my MBA project paper of the External Audit course. The project paper was tapped to the hottest topics of the U.S. economic crisis in 2008, three months after the collapse of the biggest U.S. bank institution.
The author incorporated the audit principles in analyzing the root causes of the U.S. economic crisis and how this disaster can be avoided.
On September 15, 2008, Lehman Brothers Holdings Inc filed for bankruptcy. It filed for protection under Chapter 11 of the U.S. Bankruptcy Code with the United States Bankruptcy Court for the Southern District of New York. It filed with $639 billion in assets and $619 billion in debt, Lehman's bankruptcy filing was the largest in history, as its assets far surpassed those of previous bankrupt giants such as WorldCom and Enron. Lehman was the fourth-largest U.S. investment bank at the time of its collapse, with 25,000 employees worldwide.
American International Group, Inc., also known as AIG, is an American multinational finance and insurance corporation with operations in more than 80 countries and jurisdictions. As of December 31, 2016, AIG companies employed 56,400 people.The company operates through three core businesses: General Insurance, Life & Retirement, and a standalone technology-enabled subsidiary
A study on Vijay Mallya Scam Case: Vijay Vittal Mallya, once known to you and me as ‘The King of Good Times’ or also dubbed ‘ The playboy of the East’ was born to the Indian Entrepreneur Vittal Mallya in 1955. Vittal Mallya was largely known for the role played as the director of United Breweries (UB) Group which he achieved at the age of 23. Following his father’s sudden demise Vijay Mallya became chairman of the UB Group.Vijay Mallya was always known for his flamboyant and posh lifestyle. A testament to these were the lavish New Year Parties at his Kingfisher Villa in Goa or the birthday bashes thrown on his luxurious Yacht ‘ The Indian Empress’.
The Virgin Group - Richard Branson Way - Case Study Sharanya Ray
The Virgin Group Case Study - Story of How Richard Branson put The Virgin Brand into a global map, extending it into 400 businesses.
Created during summer Internship on Marketing Management under, Prof. Sameer Mathur, IIM Lucknow.
The Role of Investment Banks in Deregulatory EnvironmentAakash Kumar
The scope of this research is to know how investment banks have affected globally in deregulated environment. This report covers some basic functions of investment banking, what is financial deregulation and what are some major examples of deregulation in history of USA and UK. Research method for this research will be analyzing the secondary data. In this report, history of investment banking is described. After that how in deregulated environment investment banks create a bubble, which busted affecting million of lives.
Finally, a conclusion is drawn from all the information about the role of investment banking in deregulatory environment giving a brief overview of investment banks and deregulation.
10 Best Books Finance and Capital MarketsJohn Cousins
These books discuss most recent events and recede back to episodes in the past. They help us gain an understanding of how we got to now, what we have learned from past debacles, and how history repeats itself.
Stephanie Milner Spent the fall and winter of 2008–2009 like m.docxsusanschei
Stephanie Milner Spent the fall and winter of 2008–2009 like many americans, watching and
reading the dire financial news as it was streamed, blogged, and reported directly from Wall Street.
Milner, however, had an even more personal interest. as a manager in the Global Corporate and
investment Banking (GCiB) division of Bank of america, she worked every day in the middle of the
financial storm. now, as the dark clouds are beginning to part and the recovery gathers steam, she has
been asked to join a committee of managers from throughout the organization who will analyze the
strategic direction of the bank and locate opportunities for growth.
historically, Bank of america has pursued a strategy of growth through acquisition. (See Exhibits 1,
2, and 3 for Bank of america’s historical financial information.) this strategy was evident even at the
height of the financial crisis, when the bank purchased mortgage lending powerhouse Countrywide
Financial in the summer of 2008 and brokerage Merrill lynch in early 2009. (See Exhibit 4 for a list of
important company dates.) these latest acquisitions made Bank of america the largest bank holding
company in the United States by asset value (Exhibits 5 and 6).1 they also led to the absorption of
nearly $100 billion dollars in toxic assets from Merrill and increased the bank’s exposure to potentially
massive losses in the mortgage industry.2
like its competitors, Bank of america had significant problems in late 2008 and was on the verge of
collapse. the U.S. federal government came to its rescue, providing $25 billion and then an additional
$20 billion in tarp funds. the U.S. treasury and the Federal Deposit insurance Corporation (FDiC)
also guaranteed $118 billion to “provide protection against the possibility of unusually large losses”3
(Exhibit 7). Without this cash injection, Bank of america could possibly have received the dubious dis-
tinction of being the largest bankruptcy in U.S. history. instead, that “honor” went to another victim of
the 2008 financial crisis, lehman Brothers, which destroyed more than $40 billion in shareholder value
when it filed for bankruptcy in September 2008.
With economists agreeing that the recession ended in mid-2009, Bank of america has some impor-
tant work to do.4 as Milner enters the conference room, she surveys the scene. the group looks weary,
but optimistic. after greeting several colleagues, she takes a seat and begins to scrawl a few notes on
the questions she feels the committee should address: Where is the bank heading? What can Bank of
america do in the future to prevent such exposure to economic meltdowns? What will the financial
landscape look like as the U.S. economy continues to recover? Where will the bank’s opportunities lie
in the new economy? and most importantly, how should the bank position itself strategically to com-
pete successfully and grow in the future? these questions swirl in Stephanie Milner’s head as the r.
This new year is starting, it's the year of change for PPPs. Compliments are strengthened, but the procedures are simplified. Faced with the ever-increasing number of scams, mainly caused by all internet scammers, PPPs have started to have a bad reputation. To offer greater transparency and 100% security, we offer in our trade programs the possibility of using a:
INTERACTIVE BROKAGE ACCOUNT
It is simply a trade account, owned and managed by the customer. At no time does he lose his money from sight ... everything is explained in the attached guide.
TIME Magazine names 25 People To Blame For The Financial CrisisWayne Caswell
Homeowners of Texas (HOT) compiled the following TIME articles to provide insight into causes of the financial crisis. The authors did an outstanding job, but we contend they put too much blame on Wall Street and mortgage-backed derivatives. Some of the nation’s largest homebuilders were culprits too.
With a lack of accountability and minimal risk of lawsuits, the builders’ strong profit incentives prompted them to cut corners with substandard materials and workmanship, cover-up known defects and code violations, artificially inflate property appraisals, make risky loans, and then resell the loans to unsuspecting investors who did not understand the risks. That’s why we say companies building substandard homes share blame with those making subprime loans.
Comparing Stability and Sustainability in Agile SystemsRob Healy
Copy of the presentation given at XP2024 based on a research paper.
In this paper we explain wat overwork is and the physical and mental health risks associated with it.
We then explore how overwork relates to system stability and inventory.
Finally there is a call to action for Team Leads / Scrum Masters / Managers to measure and monitor excess work for individual teams.
Public Speaking Tips to Help You Be A Strong Leader.pdfPinta Partners
In the realm of effective leadership, a multitude of skills come into play, but one stands out as both crucial and challenging: public speaking.
Public speaking transcends mere eloquence; it serves as the medium through which leaders articulate their vision, inspire action, and foster engagement. For leaders, refining public speaking skills is essential, elevating their ability to influence, persuade, and lead with resolute conviction. Here are some key tips to consider: https://joellandau.com/the-public-speaking-tips-to-help-you-be-a-stronger-leader/
The case study discusses the potential of drone delivery and the challenges that need to be addressed before it becomes widespread.
Key takeaways:
Drone delivery is in its early stages: Amazon's trial in the UK demonstrates the potential for faster deliveries, but it's still limited by regulations and technology.
Regulations are a major hurdle: Safety concerns around drone collisions with airplanes and people have led to restrictions on flight height and location.
Other challenges exist: Who will use drone delivery the most? Is it cost-effective compared to traditional delivery trucks?
Discussion questions:
Managerial challenges: Integrating drones requires planning for new infrastructure, training staff, and navigating regulations. There are also marketing and recruitment considerations specific to this technology.
External forces vary by country: Regulations, consumer acceptance, and infrastructure all differ between countries.
Demographics matter: Younger generations might be more receptive to drone delivery, while older populations might have concerns.
Stakeholders for Amazon: Customers, regulators, aviation authorities, and competitors are all stakeholders. Regulators likely hold the greatest influence as they determine the feasibility of drone delivery.
Senior Project and Engineering Leader Jim Smith.pdfJim Smith
I am a Project and Engineering Leader with extensive experience as a Business Operations Leader, Technical Project Manager, Engineering Manager and Operations Experience for Domestic and International companies such as Electrolux, Carrier, and Deutz. I have developed new products using Stage Gate development/MS Project/JIRA, for the pro-duction of Medical Equipment, Large Commercial Refrigeration Systems, Appliances, HVAC, and Diesel engines.
My experience includes:
Managed customized engineered refrigeration system projects with high voltage power panels from quote to ship, coordinating actions between electrical engineering, mechanical design and application engineering, purchasing, production, test, quality assurance and field installation. Managed projects $25k to $1M per project; 4-8 per month. (Hussmann refrigeration)
Successfully developed the $15-20M yearly corporate capital strategy for manufacturing, with the Executive Team and key stakeholders. Created project scope and specifications, business case, ROI, managed project plans with key personnel for nine consumer product manufacturing and distribution sites; to support the company’s strategic sales plan.
Over 15 years of experience managing and developing cost improvement projects with key Stakeholders, site Manufacturing Engineers, Mechanical Engineers, Maintenance, and facility support personnel to optimize pro-duction operations, safety, EHS, and new product development. (BioLab, Deutz, Caire)
Experience working as a Technical Manager developing new products with chemical engineers and packaging engineers to enhance and reduce the cost of retail products. I have led the activities of multiple engineering groups with diverse backgrounds.
Great experience managing the product development of products which utilize complex electrical controls, high voltage power panels, product testing, and commissioning.
Created project scope, business case, ROI for multiple capital projects to support electrotechnical assembly and CPG goods. Identified project cost, risk, success criteria, and performed equipment qualifications. (Carrier, Electrolux, Biolab, Price, Hussmann)
Created detailed projects plans using MS Project, Gant charts in excel, and updated new product development in Jira for stakeholders and project team members including critical path.
Great knowledge of ISO9001, NFPA, OSHA regulations.
User level knowledge of MRP/SAP, MS Project, Powerpoint, Visio, Mastercontrol, JIRA, Power BI and Tableau.
I appreciate your consideration, and look forward to discussing this role with you, and how I can lead your company’s growth and profitability. I can be contacted via LinkedIn via phone or E Mail.
Jim Smith
678-993-7195
jimsmith30024@gmail.com
Specific ServPoints should be tailored for restaurants in all food service segments. Your ServPoints should be the centerpiece of brand delivery training (guest service) and align with your brand position and marketing initiatives, especially in high-labor-cost conditions.
408-784-7371
Foodservice Consulting + Design
A presentation on mastering key management concepts across projects, products, programs, and portfolios. Whether you're an aspiring manager or looking to enhance your skills, this session will provide you with the knowledge and tools to succeed in various management roles. Learn about the distinct lifecycles, methodologies, and essential skillsets needed to thrive in today's dynamic business environment.
Enriching engagement with ethical review processesstrikingabalance
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Org Design is a core skill to be mastered by management for any successful org change.
Org Topologies™ in its essence is a two-dimensional space with 16 distinctive boxes - atomic organizational archetypes. That space helps you to plot your current operating model by positioning individuals, departments, and teams on the map. This will give a profound understanding of the performance of your value-creating organizational ecosystem.
Employment PracticesRegulation and Multinational CorporationsRoopaTemkar
Employment PracticesRegulation and Multinational Corporations
Strategic decision making within MNCs constrained or determined by the implementation of laws and codes of practice and by pressure from political actors. Managers in MNCs have to make choices that are shaped by gvmt. intervention and the local economy.
Integrity in leadership builds trust by ensuring consistency between words an...Ram V Chary
Integrity in leadership builds trust by ensuring consistency between words and actions, making leaders reliable and credible. It also ensures ethical decision-making, which fosters a positive organizational culture and promotes long-term success. #RamVChary
3. References
1. International Directory of Company Histories , Vol 40, 2001
2. The Culprits of Orange County , 1995
3. www.wikipedia.com
4. www.youtube.com
5. How the Thundering Herd Faltered and Fell, www.nytimes.com , 2008
5. A Brief Overview
Merrill Lynch is the wealth management division of Bank of
America. With over 15,000 financial advisors and
$2.2 trillion in client assets.
Formerly known as Merrill Lynch & Co., prior to 2009 the
firm was publicly owned and traded on the New York Stock
Exchange under the ticker symbol MER.
Merrill agreed to a purchase by Bank of America on
September 14, 2008, at the height of the 2008 Financial
Crisis. It ceased to exist as a separate entity in January 2009.
6. Merrill Lynch – Inch by Inch
Who : Charles Edward Merrill & Edmund Calvert Lynch
What : Into Finance & Insurance , A subsidiary of Bank of America
When :1914 ,Incorporated in 1959
Where : Four World Financial Center ,New York City , USA
Now : Bank of America Towers
How : Lynch met Merrill while trying to find a place to live in New York in 1907. Lynch joined
Merrill's firm in 1914
Total Assets : $ 407 Billion (2000)
Ticker Symbol : MER
7. Lynch met Merrill while trying to find a place to live in New York in 1907. Lynch
joined Merrill's firm in 1914. In 1915, the company changed names from Charles
E. Merrill Company to Merrill, Lynch and Company.
Charles Edward Merrill Edmund Calvert Lynch
The Founders
8. Rising 34 floors (500 ft), and situated between the Hudson River and the World Trade
Center site, Four World Financial Center is located in the heart of the Financial District
Four World Financial Towers
9. Bank of America Tower at One Bryant Park is a 1,200 ft (366 m) skyscraper in
the Midtown district of Manhattan in New York City, in the United States. It is located
on Sixth Avenue, between 42nd and 43rd Streets
Bank of America Towers
10. Rise of Merrill Lynch – THUNDERING HERD
Also known as ‘Catholic Firm’ of Wall Street
The firm went public in 1971 and became a multinational corporation with over US $1.8 trillion in client assets,
operating in more than 40 countries around the world. In 1977, the company introduced its Cash Management
Account (CMA), which enabled customers to sweep all their cash into a money market mutual fund, and included
check-writing capabilities and a credit card
Merrill Lynch rose to prominence on the strength of its brokerage network (15,000+ as of 2006). Merrill Lynch was
well known for its Global Private Client services and its strong sales force
By the late 1920s, Merrill, Lynch was reaping the benefits of that decade's prolonged economic boom, but Charles
Merrill gradually became uneasy about the slow investment pace. He predicted that bad times were ahead as early
as 1928, warning his clients and his own firm to get ready for an economic downturn.
11. During the World War II the company benefited greatly from the economic turnaround brought by increasing military
spending. Throughout the bull market of the postwar period and the 1950s, Merrill Lynch continued to be an
innovator and a populariser of financial information
The firm erected a permanent Investment Information Center in Grand Central Station, distributed educational
brochures, ran ads with such titles as "What Everybody Ought to Know About This Stock and Bond Business," and
even sponsored investment seminars for women. These new ideas made Merrill Lynch the best-known investment
firm of the day.
Charles Merrill's reputation soared to such heights that shortly before his death in 1956 one Wall Street historian
referred to him as "the first authentically great man produced by the financial markets in 50 years.”
The net income in 1967 was handsome $ 55 million ,representing an increase of 300 percent during the previous
eight years. This included Merrill Lynch's first determined entry into the mutual fund markets; and the purchase of
Royal Securities Corporation of Canada, significantly strengthened Merrill Lynch's position.
12. In 1971 member of the New York Stock Exchange to invite public ownership of its shares. During the telecast of the
World Series that year, Merrill Lynch introduced its famous slogan, "Merrill Lynch is bullish on America.“
1977 it announced the creation of the Cash Management Account (CMA). This unique account allowed individual
investors to write checks and make Visa charges against their money market funds. Banks did not appreciate this
incursion into their territory and mounted a number of legal campaigns to stop it, to no avail.
By 1989, fully half of Merrill Lynch's $304 billion in customer accounts were placed in CMAs, and most of the other
leading brokerage houses had developed similar integrated-investment vehicles.
13. ML became one of the first six foreign companies to join the Tokyo Stock Exchange. The following year, when the
firm became a member of the London Exchange, Merrill Lynch was able to offer round-the-clock trading. Later in
1986 Merrill Lynch sold its real estate brokerage unit as part of Schreyer's plan to unload low-profit concerns so
that the company could focus more on using its powerful retail divisions to sell the securities its investment
banking department brought in. The strategy worked; profits increased to a record $453 million during that year.
14. Merrill Lynch suffered its first quarter in the red since 1989 when it posted a $900 million bond trading loss in the
third quarter of 1998. The firm also had loaned money to the Long-Term Capital Management hedge fund, which
nearly collapsed; as part of a bailout led by the Federal Reserve, Merrill Lynch chipped in $300 million. Finally, there
was the $400 million in fines from the Orange County debacle. In the midst of these travails, the company announced
that it would fire 5 percent of its 64,800-employee workforce.
In the late 1990s online investing revolution, in 1997 introduced Merrill Lynch Online. ML came into online trading in
December 1999 with the launch of Merrill Lynch Direct. This web site offered brokerless trading at $29.95 for stocks,
mutual funds, and bonds; access to initial public offerings being underwritten by Merrill Lynch.
Downfall of Merrill Lynch – RICHES TO RAGS
15. 2000 and into 2001--highlighted of course by the spectacular bursting of the Internet stock bubble--Merrill Lynch
began trimming expenses. Non core units were placed on the block and the company sold its mortgage-servicing and
origination unit and its energy-trading business. Some job cutting took place as well, including the elimination of
nearly 2,000 jobs in the brokerage unit.
Secluded office of Merrill Lynch , NYC
16. Major causes for the decline of Merrill Lynch
Collateralized Debt Obligations (CDO): These instruments repackaged a pool of bonds, derivatives, and other
instruments such as corporate bonds. The CDO derived its value from converting illiquid assets, such as buildings, into
liquid financial instruments. A mortgage CDO bundled thousands of individual mortgages into a single bond, which was
supposed to diversify default risk.
Mortgage-backed Securities (MBS): These are a subset of CDOs. They were bundles of mortgages that were sold to
Fannie Mae, which repackaged them to sell as stock to individual investors. This process enabled banks to take
mortgages off their balance sheets.
Credit Default Swaps (CDS): These were an insurance policy against the risk of investors, who bought them like bonds.
A premium was paid to underwrite the risk of the various instruments like CDOs. CDSs lowered the cost of taking risks
and created confidence in investors.
17. The Orange County Issue
Orange County was at the time the largest American county to have gone bankrupt, when in 1994,
treasurer Robert Citron's investment strategies left the county with inadequate capital to allow for any
rise in interest rates for its trading positions. When the residents of Orange County voted down a
proposal to raise taxes in order to balance the budget, bankruptcy followed soon after. Citron later
pleaded guilty to six falcies regarding the matter.
Merrill Lynch settled with Orange County, California, for a massive $400 million to settle accusations
that it sold inappropriate and risky investments to former county treasurer Robert Citron. Citron lost
$1.69 billion, which forced the county to file for bankruptcy in December 1994. The county sued a
dozen or more securities companies, advisors and accountants, but Merrill settled without admitting
liability in June 1998. The county was able to recover about $600 million in total, including the
$400 million from Merrill.
18. Sub Prime Lending
In 2001, interest rates in the U.S. fell to low levels for several reasons. The environment of “cheap credit”
encouraged investors and financial institutions to speculate in the real estate market, which increased property
value and enticed household consumers to take additional debt. The Federal Reserve began to raise the interest
rate incrementally in late 2004.
By 2006, the subprime mortgage market began to appear vulnerable because of the increased interest rate. Holders
of adjustable rate mortgages were required to make higher monthly payments than many could meet. The entire
mortgage finance system, which was based on the assumption of ever-rising property value, began to unravel. Many
rushed to sell their houses, which created further downward pressure on housing prices. This created a series of
financial failures as CDOs dropped in value and banks lost their capital in defaults and withdrawals
19. In late 2007, when Merrill Lynch was forced to admit its liabilities of $7.9 billion and write off $9 billion in holdings,
O’Neal was forced to resign, and John Thain took over as CEO. O’Neal was still allowed to retain his $30 million in
retirement benefits and $129 million in stocks and options.
John Thain also failed to understand the extent of Merrill Lynch’s financial condition, which he later acknowledged.
But with further losses of $10 billion in CDOs in 2008, the bank was in serious trouble. With the support of the New
York Federal Reserve Bank, Thain approached Bank of America CEO Ken Lewis to sell the company.
Ultimate Collapse of Merrill Lynch – THE DOOM’S DAY
23. Sale to Bank of America : BYE BYE
MERRILL LYNCH
Why???
•Significant losses were attributed to the drop in value of its
large and unhedged mortgage portfolio in the form
of collateralized debt
•loss of confidence in Merrill Lynch's solvency.
•inability to refinance short term debt.
When??
On Sunday, September 14, 2008,Bank of America announced.
24. How??
Thain sold Merrill Lynch for $50 billion, at $29
per share. The investment firm had more than
$1.02 trillion in assets and more than 60,000
employees worldwide. Bank of America
became more universal once it acquired
Merrill Lynch.
The primary concern for Bank of America was
the actual worth of Merrill Lynch in 2008,
when the market environment fluctuated
rapidly.
25. Why Bank of America was
interested?
Lewis wanted to buy the company
because of Merrill Lynch’s strongest
unit, its 16,000 investment advisors,
which would fill a hole in Bank of
America’s product offering.
The entire transaction took place in the
panic when Lehman Brothers was
about to declare bankruptcy.