Bank of America Completes Merrill Lynch Purchase
CHARLOTTE, N.C., Jan. 2 /PRNewswire-AsiaNet/ --
Gains Strength in Wealth Management, International and Investment Banking
Businesses
Bank of America Corporation today completed its purchase of Merrill Lynch &
Co., Inc. creating a premier financial services franchise with significantly
enhanced wealth management, investment banking and international capabilities.
"We created this new organization because we believe that wealth management
and corporate and investment banking represent significant growth opportunities,
especially when combined with our leading capabilities in consumer and commercial
banking," said Bank of America Chairman and Chief Executive Officer Ken Lewis.
"We are now uniquely positioned to win market share and expand our leadership
position in markets around the world."
Bank of America will have the largest wealth management business in the world
with approximately 20,000 financial advisors and more than $2 trillion in client
assets. Global investment management capabilities will include approximately 50
percent ownership in BlackRock Inc., which at September 30 had $1.26 trillion in
assets under management. Bank of America had $564 billion in assets under
management in the same period.
The combination also adds strengths in debt and equity underwriting, sales
and trading, and merger and acquisition advice, creating significant
opportunities to deepen relationships with corporate and institutional clients
around the globe.
Under terms of the agreement, shareholders of Merrill Lynch received 8595
shares of Bank of America common stock for each common share of Merrill Lynch.
As previously announced, Bank of America expects to achieve $7 billion in
pre-tax expense savings, fully realized by 2012. Cost reductions will come from a
range of sources, including the elimination of positions announced on December
11, and the reduction of overlapping technology, vendor and marketing expenses.
In addition, the company is expected to benefit by leveraging its broad product
set to deepen relationships with existing Merrill Lynch customers.
Forward-Looking Statements
Bank of America may make forward-looking statements, including statements
about the financial conditions, results of operations and earnings outlook of
Bank of America Corporation. The forward-looking statements involve certain risks
and uncertainties. Factors that may cause actual results or earnings to differ
materially from such forward - looking statements include, among others, the
following: 1) projected business increases following process changes and other
investments are lower than expected; 2) competitive pressure among financial
services companies increases significantly; 3) general economic conditions are
less favorable than expected; 4) political conditions including the threat of
future terrorist activity and related actions by the United States abroad may
adversely affect the company's businesses and economic conditions as a whole; 5)
changes in the interest rate environment and market liquidity reduce interest
margins, impact funding sources and effect the ability to originate and
distribute financial products in the primary and secondary markets; 6) changes in
foreign exchange rates increases exposure; 7) changes in market rates and prices
may adversely impact the value of financial products; 8) legislation or
regulatory environments, requirements or changes adversely affect the businesses
in which the requirements or changes adversely affect the businesses in which the
company is engaged; 9) changes in accounting standards, rules or interpretations,
10) litigation liabilities, including costs, expenses, settlements and judgments,
may adversely affect the company or its businesses; 11) mergers and acquisitions
and their integration into the company; and 12) decisions to downsize, sell or
close units or otherwise change the business mix of any of the company.
Accordingly, readers are cautioned not to place undue reliance on forward-looking
statements, which speak only as of the date on which they are made. Bank of
America does not undertake to update forward-looking statements to reflect the
impact of circumstances or events that arise after the date the forward-looking
statements are made. For further information regarding Bank of America
Corporation, please read the Bank of America reports filed with the SEC and
Bank of America
Bank of America is one of the world's largest financial institutions, serving
individual consumers, small and middle market businesses and large corporations
with a full range of banking, investing, asset management and other financial and
risk-management products and services. The company provides unmatched convenience
in the United States, serving more than 59 million consumer and small business
relationships with more than 6,100 retail banking offices, more than 18,000 ATMs
and award-winning online banking with more than 25 million active users. Bank of
America offers industry leading support to more than 4 million small business
owners through a suite of innovative, easy-to-use online products and services.
The company serves clients in more than 150 countries and has relationships with
99 percent of the U.S. Fortune 500 companies and 83 percent of the Fortune Global
500. Bank of America Corporation stock (NYSE: BAC) is a component of the Dow
Jones Industrial Average and is listed on the New York Stock Exchange.
SOURCE Bank of America Corporation
CONTACT: Investors: Kevin Stitt, +1-704-386-5667, or Lee McEntire,
+1-704-388-6780; or Reporters: Scott Silvestri, +1-980-388-9921,
scott.silvestri@bankofamerica.com, all of Bank of America/
PRN Photo Desk, photodesk@prnewswire.com /
(BAC)
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