...Es una institución financiera, que sirve a consumidores individuales, pequeñas, medianas y grandes corporaciones con una amplia gama de servicios bancarios, de inversión, gestión de activos y otros productos financieros y de gestión de riesgos. Esta compañía fue adquirida por el Banco de América por la cantidad de 44.000 millones de dólares en septiembre de 2008 como parte del rescate financiero de Estados Unidos. Aun a pesar de que durante una junta en diciembre del 2008 John A. Thain, presidente y CEO de Merrill Lynch, anunció que cuatro grandes ejecutivos de la empresa: presidente y director de operaciones Greg Fleming, presidente financiero Nelson Chai, presidente de Global Wealth Management McCann Robert, y el Asesor Legal General Romero Berkery no recibirían ninguna bonificación para 2008, Merrill Lynch se vio envuelta en cuestiones legales debido a las compensaciones y remuneraciones otorgadas a ejecutivos durante la crisis económica mundial. Merrill Lynch & Co en secreto adelantó la fecha en la que otorgó los bonos correspondientes al año 2008, se compensó de manera extremadamente generosa a los ejecutivos de esta firma a pesar tener miles de millones de dólares en pérdidas, dando bonos de $ 1 millón o más a cerca de 700 empleados. El fiscal general de Nueva York, Andrew Cuomo señaló en una carta enviada a Barney Frank, representante del comité de servicios financieros que esta firma de Wall Street otorgó $ 3.6 billones de dólares en bonos a más de 39.000 empleados...
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...Merrill Lynch and Co. was formed back in 1914 as a small investment firm on Wall Street, but over time grew into one of the largest firms in the world. In 1971 the company went public and at the time they were managing over 1.7 trillion dollars in assets. However come 2007 and the financial crisis Merrill Lynch and Co found themselves only days away from declaring bankruptcy. Bank of America Corporation is an American multinational banking and financial services corporation, is the largest bank holding company in the United States by assets, and the second largest bank by market capitalization (Top 50 bank, 2011). At the same time Merrill Lynch and Co was having trouble with consecutive multi-billion dollar loss quarters, Bank of America was in talks with Lehman Brothers about a possible acquisition. However the government could not make any guarantees to Bank of America for funding so talks died down in the last hours. Thus setting up what many professionals in the financial sector deem as the “Deal from Hell”. The exact cause of the downfall of one of the largest financial institutions in the world is up for debate among professionals from that field. According to some the collapse of Merrill Lynch started earlier in the years of 2006-2007 and can be widely attributed to then CEO Stanley O’Neal. According to Barry Grey, “The 93-year-old firm announced it had lost over $2.2 billion in the third quarter and written off $8.4 billion in failed investments, of which $7.9 was...
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...occurred in the international capital markets during the past decade, does Merrill Lynch’s strategy of expanding internationally make sense? Why? Answer: Many students will probably agree that Merrill Lynch’s strategy of expanding internationally makes sense. By diversifying its base, the company can spread out the effects of the fluctuations in the international capital markets. However, other students may suggest that Merrill Lynch may be taking too many risks with its international expansion. Students taking this perspective may point out that Merrill Lynch made a significant investment in Japan, and then ended up losing $500 million and firing 75 percent of its workforce there. 2. What factors make Japan a suitable market for Merrill Lynch to enter? Answer: Japan is an attractive market to Merrill Lynch for several reasons. Since the mid-1990s, Japan has been loosening its restrictions in the financial services industry paving the way for foreign firms to take advantage of the large financial assets held by typical Japanese households. Prior to the loosening of the restrictions, Japanese investors had only limited options when it came to the ¥1,220 trillion they had saved. In 1997, for example, just 3 percent was invested in mutual funds, but the looser regulations meant that by 1998, Japanese citizens could invest in foreign stocks, bonds, and mutual funds. 3. Review Merrill Lynch’s 1997 reentry into the Japanese private client market. Pay close attention...
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...Case Analysis – Innovation and Collaboration at Merrill Lynch David A. Davis The changed environment of Wall Street threatened the independent, silo culture that dominated the investment research trade. Brokerage houses needed to identify opportunities to create value-added products. Despite industry reforms, lower trading volume, and declining commission rates, “research continued to provide brokerage firms’ key competitive advantage, according to Institutional Investor.” (Harvard Business School, 2007, p3) Research management at Merrill Lynch determined that collaboration amongst its analyst would lead to the innovative products and services considered necessary to prosper in this climate. This paper discusses why, despite a limited source of power, Candace Browning’s use of persuasion as an influence tool was effective in moving her department from its star culture to one that better fits the changing market for investment research. Power – Her position as head of Global Securities Research provided Candace Browning with legitimate power over Merrill Lynch analysts around the world. This potential to change the attitudes and behaviors of her staff was weakened by the low centrality she had in her position. “Centrality refers to the degree and nature of the interdependence between the power holder and others.” (McShane & Von Glinow, 2010, p306) Research analysts were used to working autonomously in their areas of expertise and were more dependent on Institutional...
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...Merrill Lynch en Japón Carla S. Ocacio University of Phoenix MGT/448 Prof. María I. Romero 5 de febrero de 2011 Merrill Lynch en Japón En este escrito se discutirá el caso de Merrill Lynch en Japón. También, se señalarán los retos legales, culturales y éticos dentro de los negocios globales. Además, se determinará el rol del gobierno anfitrión dentro de dichos negocios y se resumirá las estrategias y retos operacionales que enfrentan los gerenciales en el caso a discutir. Por tanto, Merrill Lynch es un banco de inversiones. Dicha institución es de las más reconocidas en servicios financieros en Estados Unidos y se caracteriza por ser el asegurador más grande del mundo tanto en deuda como capital. Su posición se encuentra en tercer lugar de mayores fusiones, asesoramiento y adquisiciones luego de Morgan Stanley y Goldman Sachs. Dicha institución bancaria por mucho tiempo ha tenido un alcance global y su presencia dominante lo es Londres y Tokio. No obstante, la presencia internacional de Merrill Lynch se limitaba a la inversión de negocios esto a diferencia de sus negocio a clientes privados los cales ofrece servicio de banca, asesoramiento financiero y servicios de inversiones. Pero lo antes mencionado era ofrecido solo en Estados Unidos. Luego de 1990 empezó a cambiar ya que adquirió Smith New Court, la casa de inversión más grande en Gran Bretaña. Esto fue seguido en 1997 por la adquisición de Mercury Asset Management, gestor principal...
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...Case Study MERRILL LYNCH IN JAPAN Case Fact 1980 Merril Lynch memulai bisnis private client dan menjadi perusahaan asing pertama yang masuk ke pasar investasi klien jepang. 1997-1998 terjadi perubahan regulasi di Jepang, yaitu relaksasi kontrol devisa dan reksa dana. Melakukan joint venture (aliansi) dengan Sanwa Bank untuk menjual produk reksa dana kepada konsumen melalui 400 cabang yang dimiliki Sanwa. Terjadi kebangkrutan perusahaan Yamaichi securities yang menjadikan Merril pada tahun 1997 mengambil alih dan memperoleh 33 kantor cabang yang dimiliki Yamaichi Problem Krisis pada tahun 2001-2002 menjadi faktor utama pertimbangan Merril Lynch apakah harus tetap melanjutkan usaha bisnisnya dan memasuki pasar private klien di Jepang. Recommendation Sebaiknya Merril Lynch melanjutkan kembali bisnisnya di Jepang, faktor krisis yang terjadi pada tahun 2001-2002 adalah faktor dari ekonomi makro yang tak bisa dikendalikan dan dihindari, namun dapat disiasati penanggulangannya dengan melakukan PHK dan penutupan lokasi ritel guna mengurangi beban biaya yang dimiliki, penutupan tersebut tentunya tidak berpengaruh pada kepemilikan asset karena semua asset dikuasai oleh perusahaan Induk. Hal yang paling mendasar mengenai pertimbangan bagi Merril untuk melanjutkan bisnis dan kembali memasuki private klien adalah karena adanya pembaharuan regulasi bisnis di Jepang yang telah membuat keuntungan bagi investor asing dalam melakukan bisnisnya...
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...Ken Lewis, the former CEO of Bank of America, was confronted with an enormous predicament when Ben Bernanke and Henry Paulson requested that his company immediately acquire Merrill Lynch to save them from declaring bankruptcy. With the financial system of the United States on the verge of collapsing, how do you say no to the Federal Reserve Chairman and the Secretary of the U.S. Treasury? Thus, Lewis agreed. Now fast forward one year later to September 2009. At this time, Lewis has agreed to step down as CEO. He has also been indicted for fraud for “deliberately misleading his shareholders about the ballooning losses at Merrill Lynch” before the bank bought the firm, which includes failing to disclose the year-end bonuses that were paid out to Merrill executives (Fitzpatrick and Eckblad). Furthermore, this begs two questions: what ethical dilemma was Lewis facing during this crisis and how could he have better handled the request from Bernanke and Paulson? Assuming I was Ken Lewis when Bernanke and Paulson requested me to acquire Merrill Lynch, I believe I would have gone through with the acquisition as well. According to House Republican staffers in a memo obtained by Bloomberg, “the Federal Reserve and U.S. Treasury overstepped their authority and pressured Bank of America to complete its Merrill Lynch purchase” (Lanman and Torres). The memo also stated that: “a gun was placed to the head of Bank of America [Lewis] to go through with the merger. Government officials crossed...
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...When Dennis Kozlowski became CEO of Tyco International he reincorporated the aggressive management style and lavish lifestyle of mentor and former CEO Joseph Gaziano. During his tenure as CEO, Kozlowski seemed to have a lot of control over what the company did. He acquired many acquisitions, one of which was to expand the company into noncyclical industries since cyclical industries were one of the company’s weak points. He did this by acquiring and reviving Kendall Company from bankruptcy and rebuilt the company to be the core of the “new Tyco Healthcare Group.” This double earnings, which pleased the board of directors, who gave Kozlowski a salary increase. Kozlowski also acquired ADT Security Services, which happened to be a British-owned company located in Bermuda. This allowed Tyco to create offshore subsidiaries to shelter their foreign income from U.S. tax. Sheltering foreign income from U.S. tax is not illegal, but it can certainly be considered unethical. Under U.S law, there are two provisions that allow companies certain benefits with regard to foreign income. One of these benefits is the foreign tax credit, which allows a company to reduce the U.S. marginal tax rate by the foreign marginal tax rate, so the company is not double taxed. The other provision allows companies to delay paying taxes on foreign income indefinitely unless the profits are brought onto the parent company’s books. So, while Tyco sheltering its foreign income is not illegal, it is...
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...beings make. Cavico (2009) states utilitarianism is more than just moral philosophy. It is a way of reformation and used extensively in government decision making. This will be discussed further in the Bank of America-Merrill Lynch merger. Utilitarianism is considered a scientific system of ethics and not just a philosophical theory of ethics. Utilitarian ethics follows the belief of maximizing the greatest good for the largest number of people. As utilitarianism is identified, one needs to learn that the greatest good could be based on aggregate principle or a distributive principle. The Bank of America-Merrill Lynch merger will be assessed in regards to who, what and how the greater good will be affected in this merger. Within utilitarianism, a moral philosophy is developed that focuses on the consequences of specific actions. An action is done, then observed and then analyzed. After identifying all the people that were involved, one needs to ask the question, “Do the sum of good consequences outweigh the sum of the bad consequences?” Quantify all the good and bad consequences in the scenario and if the good consequences are greater than the bad consequences then the action was moral and vice versa. In this paper, the actions of the Bank of America-Merrill Lynch merger will be discussed, evaluated and quantified with the Richard DeGeorge Utilitarian perspective. Pinpointing the stakeholders in this case will show who was direct and indirectly affected and how they were affected...
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...significant move on the part of BoA shareholders? 6 How could Thain justify spending $1.2 million on his office when Merrill Lynch was on the verge of bankruptcy? 7 What did Ken Lewis hope to gain by claiming that he was “pressured” into completing the Merrill Lynch deal? 9 Of all decisions made by Ken Lewis in this case study, which one do you think did the most damage to his reputation? And why? 10 What should Lewis have done? 12 Conclusion 13 References 14 Case Summary Bank of America (BoA), founded in 1998 is an American multinational banking and financial services corporation. They were notably a key player in the global financial crisis that struck in 2008. Ken Lewis, a former CEO acquired Countrywide Financial and Merrill Lynch. To his dismay, the acquisitions turned out to be disastrous as the first week of January 2009 enlightened the problems that existed within Countrywide Financial and Merrill Lynch; they were bankrupt with assets in their balance sheet that set a new mark for toxicity in the financial market. This required attention and direct aid from the Federal Government itself. However, following this month BoA fell by 65 percent. Just a month after the first quarter of 2009, Ken Lewis was made CEO and stripped off chairmanship by the shareholders’ consent. (Tanoh, 2013) The aftermath of the two acquisitions of Countrywide and Merrill Lynch allowed BoA to become a dominant mortgage provider as well as the biggest financial services company in the world...
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...were considered. "The investment banking industry has changed as a result of the financial crisis," said Global Finance publisher Joseph D. Giarraputo. "The best institutions are those that have a business model focused on customer needs." For editorial information please contact: Dan Keeler, Editor, email: dan@gfmag.com GLOBAL AWARDS | Best Investment Bank | Morgan Stanley | Best Equity Bank | Morgan Stanley | Best Debt Bank | Barclays Capital | Best M&A Bank | Morgan Stanley | Best Up-and-Comer | QInvest | Most Creative | Bank of America Merrill Lynch | SECTORS | Consumer | Credit Suisse | Financial Institutions | Bank of America Merrill Lynch | Health Care | J.P. Morgan | Infrastructure | Scotia Capital | Industrial/Chemicals | J.P. Morgan | Media/Entertainment | J.P. Morgan | Metals & Mining | BMO Capital Markets | Oil & Gas | Bank of America Merrill Lynch | Power | Morgan Stanley | Real Estate | J.P. Morgan | Technology | Credit Suisse | Telecom | J.P. Morgan | REGIONAL AWARDS | NORTH AMERICA | | Best Investment Bank | Morgan Stanley | Best Equity Bank | Morgan Stanley | Best Debt Bank | Barclays Capital | Best M&A Bank | Morgan Stanley | WESTERN EUROPE | |...
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...Bank of America is one of the largest corporations in the nation; however they are hit with lawsuits almost every week. The lawsuits range from stockholders to customers. Most recent one being, a 50 billion lawsuits brought by Bank of America shareholders. When the market crashed (recession hit or financial crisis) in 2008, Bank of America acquired Merrill Lynch. The shareholders claim that the bank’s executives including former chief operating officer Kenneth Lewis failed to disclose a loss of $15.31 billion after the acquisition of Merrill Lynch. Shareholders believed that the loss was hidden to ensure they did not vote against the transaction. The bank disclosed the loss to the public after the acquisition of Merrill Lynch was completed. It stated in the article that the bank and its executives knew about the losses months after the Merrill Lynch deal closed. Whether the bank’s intentions were to deceive the shareholders or not, it was unethical. Bank of America argued that the loss was uncertain and the loss would expected by the shareholders since Merrill Lynch was losing billions quarterly. In its defense, Bank of America believes that the disclosure of the loss was not material. In my opinion, I do believe that it was wrong that Bank of America to hide the loss from shareholder and the public since they are a corporation. Nevertheless, it’s easy to sue big corporations such as Bank of America. Since they are hit with several lawsuits during the year, it’s likely...
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...INTRODUCTION About Merrill Lynch: The wealth management division of Bank of America is currently known as Merrill Lynch. It comprises of 15,000 financial advisors and $2.2 trillion in client assets; it is the world's largest brokerage. Earlier the firm was publicly owned and traded on the New York Stock Exchange under the ticker symbol MER. In Brief: In this particular case study we find that Merrill Lynch has introduced a new client relationship technique called the Supernova at the Merrill Lynch’s Indianapolis offices. This practise was implemented on a trial basis and generated a positive and vibrant response between the financial advisors (FA’s) and their customers. But on the flipside it was continuously challenging the traditional ways of dealing of a relationship by a FA with its client party. The concerned person here in this case is in a dilemma whether to apply Supernova in Merrill Lynch with a larger perspective. SUPERNOVA Supernova was the name given to new way of relationship managementintroduced by Merrill Lynch’s Indianapolis offices. Supernova was invented by Rob Knapp, head of Mid West Dist office who’s “Customer Satisfaction” ranked last among 32 dist in country in 1995. The Supernova Model is a client service, client acquisition, and practice management model that drives an explosive acceleration in revenue and client satisfaction by capitalizing upon the 80/20 Rule. It was first implemented by financial advisors at Merrill Lynch under the leadership of...
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...| | www.bizbangladesh.com - |- My Business Zone -| | | | | | Square Toiletries Ltd | | Bizbangladesh.com | | | | - | Home | | - | Company Info | | - | Products/Services | | - | Contact us | | | | | | | | - | Our Trade Leads (0) | | - | Mail to Us | | | | | | | | About Us ~ | Square toiletries limited (stl) started in 1988 as a division an iso 9001 certified company. in 1994 square toiletries limited began its journey as a private limited company. now stl is the country’s leading manufacture of international quality cosmetics and toiletries products. | | | Year of Establishment : | 2007 | ~ Contact Info ~ | | Company Address: | 72, Mohakhali, Dhaka-1212 | City / Province: | | Country: | Bangladesh | Phone Number: | + (+880-2) 8861531-40 | Fax Number: | + | Contact Person: | Md. Shamsuzzan | Position: | Executive, Commercial | Email | Email to this company | HomePage: | Click to visit | | | | No Product info found ~ | | | | About us | Advertise with us | Contact us | Site map | | | | Home | Copyright © www.bizbangladesh.com | | | | | | * * * Sign Up * Sign In Top of Form Bottom of Form * Research documents * Book Notes * AP Notes StudyMode - Premium and Free Essays, Term Papers & Book Notes 1. Home » 2. Miscellaneous » 3. Recreation & Sports Merril Shop By blackroots |...
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...must evaluate its core values to sustain its competitive advantage but in a manner that will allow them to expand its services, and continue to compete with the top players in the industry. Key Issues and Problems When observing Edward Jones Financial, I found three critical issues and problems with the firm. Edward Jones built its business model around creating an environment that would allow entrepreneurs to thrive and run their own businesses to a certain extent. This is what originally led to Edward Jones’ success when the company first started; however, it is also the catalyst for the issues of the firm that were present in 2006. Edward Jones’ three main issues were the cannibalization of its business by bigger firms such as Merrill Lynch, customers leaving Edward Jones to manage their own money via online platforms such as E-Trade (MITR, 2014), and the lack of ability to manage high net worth funds that are typically present with institutional funds such as...
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