Merrill Lynch Standalone

About Merrill Lynch Standalone

Merrill Lynch was acquired by Bank of America in September 2008 before it could fail. Merrill had lost 51 billion on subprime mortgage investments in the year before the acquisition. CEO John Thain had raised capital from sovereign wealth funds including Temasek and Kuwait Investment Authority. Thain sold toxic assets at 22 cents on the dollar to Lone Star Funds. The September 2008 acquisition saved Merrill from the fate of Lehman. Thain was criticized for spending 1.2 million on office decoration and for rushing 4 billion in bonuses before the acquisition closed. He was fired by Bank of America CEO Ken Lewis in January 2009. The acquisition rescued Merrill bondholders at the expense of Bank of America shareholders.