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New York, NY – In a rushed bid to ride out the storm sweeping American finance, 94-year-old Merrill Lynch & Co. agreed late today to sell itself to Bank of America Corp. for roughly $44 billion.
The deal, which was being worked out in 48 hours of frenetic negotiating, could instantly reshape the U.S. banking landscape, making the nation’s prime behemoth even bigger.
The boards of the two companies approved the deal Sunday evening, according to people familiar with the matter.
In adding Merrill Lynch, it would control the nation’s largest force of stock brokers as well as a well-regarded investment bank. A combination would create a bank of vast reach, involved in nearly every nook and cranny of the financial system, from credit cards and auto loans to bond and stock underwriting, merger advice and wealth management.
At $44 billion, or roughly $29 a share, Merrill would be sold at about two-thirds of its value of one year ago, and half its all-time peak value of early 2007. Merrill shares changed hands at $17.05 each on Friday, after falling sharply in the wake of Lehman’s looming demise. “
Here it comes…..
Also Mayor Bloomberg has cancelled his trip to California Monday due to the possible collapse of two major financial institutions in New York City.
Bank of America is buying them with your money!! The gov’t is funding the deal at no risk to Bank of America.
annon 9:30, is that WAMU?
Which is the other one?
Why are you so cryptic and don’t mention their name.
The other one Lehman Brothers