Bank of America Merrill

About Bank of America Merrill

Bank of America acquired Merrill Lynch on January 1, 2009 for approximately 50 billion. The deal was negotiated in September 2008 during the Lehman weekend. CEO Ken Lewis was pressured by Federal Reserve and Treasury officials to complete the acquisition despite mounting Merrill losses. Merrill lost 15.3 billion in the fourth quarter of 2008. Lewis was accused of misleading shareholders about Merrill losses before the acquisition vote. The SEC settled charges for 150 million. Lewis was forced to resign in 2009. Bank of America received 45 billion in TARP funding. The Merrill acquisition was criticized as a government engineered rescue disguised as a strategic acquisition. Eventually, Merrill became profitable and was considered one of Bank of Americas strongest divisions.