Divorce Bank of America style

Citation

Tully, S. (2009), "Divorce Bank of America style", Strategic Direction, Vol. 25 No. 8. https://doi.org/10.1108/sd.2009.05625had.007

Divorce Bank of America style

Article Type: Abstracts From: Strategic Direction, Volume 25, Issue 8

Tully S. Fortune (Switzerland), 16 February 2009, Vol. 159 No. 3, Start page: 52, No. of pages: 4

Purpose – Investigates the reasons that the acquisition of Merrill Lynch by Bank of America (BofA) has been so disastrous. Design/methodology/approach – Reports on the recent acquisition of Merrill Lynch by Bank of America; traces the events that led to the takeover. Describes how BoA, chief executive, Ken Lewis, chief executive of BofA has come to regret the acquisition and outlines how the actions taken by recently departed chief executive of Merill Lynch, John Thain, undermined Merill Lynch’s financial standing. Records the deal that was struck between Lewis and Thain; examines why the takeover that was believed by Lewis to be the “deal of a lifetime” resulted in seeming disaster for the BofA and outlines how Lewis attempted, unsuccessfully, to withdraw from the deal. Looks at the reasons that Lewis began to lose confidence in Thain and why he asked him to resign; suggests that Thain must bear a lot of responsibility for Merill’s woes and believes that Lewis, too, must take a share of the blame. Highlights how the deal is likely to adversely affect BofA for years to come and describes the government rescue package for BofA and Merrill. Originality/value – Identifies the failings of John Thain as chief executive of Merrill Lynch.Article type: Viewpoint ISSN: 0738-5587 Reference: 38AF508

Keywords: Bank of America, Banking, Mergers and acquisitions, Merrill Lynch, Strategy