Merrill Lynch and Co.

What Is Merrill Lynch and Co.?

Merrill Lynch and Co. is the former name of an unmistakable Wall Street investment firm. Since its acquisition by Bank of America (BAC) in 2009, it has become referred to just as "Merrill" and works as a wealth management division of Bank of America.

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

Grasping Merrill Lynch and Co.

Today, Merrill Lynch and Co. is settled at 250 Vesey Street in Manhattan, New York. Part of Bank of America, the firm holds assets under management (AUM) of more than $2.75 trillion and utilizes north of 19,000 financial advisors.

While today it is centered around its wealth management business, Merrill Lynch and Co. is recognized for its investment banking activities. In June 1971, Merrill Lynch and Co. completed its initial public offering (IPO) and started trading on the New York Stock Exchange (NYSE).

During the mid 2000s, Merrill Lynch and Co. turned into a leader in the market for mortgage-backed collateralized debt obligations (CDOs) following its acquisition of the subprime lending firm First Franklin Financial in 2006.

Merrill Lynch and Co. bit by bit expanded its service offerings by gaining and converging with different firms. The company has been participated in retail brokerage services, prime brokering, broker-dealer activities, and commodities trading, among others.

Bank of America and Merrill Lynch and Co.

The company turned into the subject of far and wide concern during the 2007 to 2008 financial crisis. In November 2007, Merrill Lynch and Co. announced billions in losses connected with its portfolio of subprime mortgages and related derivative products. Following the termination of its chief executive officer (CEO), the company started selling company assets in a bid to keep up with its solvency in the midst of speculation that it was on the verge of collapse.

In September 2008, Bank of America proposed a takeover of Merrill Lynch and Co. with an offer value of more than $40 billion. This takeover offer, which addressed a premium of more than 70% relative to the company's then-discouraged market price, was accepted presently, and Bank of America at last acquired Merrill Lynch for a $50 billion every single stock transaction.

Merrill Lynch Changes Due to Digitalization

According to Financial Planning, the company plans to cut payouts to its advisors that oversee small account holders in 2021 with an end goal to keep up with stability. Advisors won't receive a payout for production credits created in families under $250,000.

This change repeats a trend among the greatest brokerage firms, which are encouraging advisors to take care of bigger clients and move smaller accounts to robo-advisors or self-directed platforms.

This action is an impression of the digital transformation that has happened in the fintech sector. A senior Merrill executive stated: "That [shift] truly reflects where our business is today and where it is going."

Features

• Merrill Lynch and Co. is a long-laid out American financial firm.
• It was acquired by Bank of America in 2009 in the wake of the 2008 financial crisis.
• Prior to its acquisition by Bank of America, the company was a leading player in the subprime mortgage market, which collapsed in 2007.