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Thursday 23rd of October 2008
October 21, 2008

Jobs go in Merrill Lynch / BoA merger


by Kay Murchie
”Jobs

Last month, Merrill Lynch was quickly sold to Bank of America following the collapse of Lehman Brothers.

The deal is expected to be finalised at the end of the year, however, around 500 jobs are said to be at risk as a result.

Merrill’s chief executive, John Thain, said the job losses could be made as early as this week and are just the start of many more to come.

On completion of the merger, John Thain will become president of global banking, securities and wealth management at BoA.

According to sources close to the situation, sales jobs and traders in the fixed-income and equity divisions are set to go first, however, it is unknown whether the job losses would be in the US or elsewhere.

Merrill Lynch has already shed over 4,000 jobs this year after announcing five consecutive quarterly losses totalling $23.8 billion (£13.8 billion).

Last week, Merrill reported a loss of $5.15 billion in the third quarter. The announcement coincided with other US banking giants including Citigroup, JP Morgan and Wells Fargo who all reported disappointing financial results.

Meanwhile, New York City comptroller, William Thompson, said the city is preparing for the loss of up to 35,000 jobs in the banking sector, primarily as a result of the demise of Bear Stearns and Lehman Brothers.

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Story link: Jobs go in Merrill Lynch / BoA merger


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