Tag: Merrill Lynch

US banks under investigation

US banks under investigation

Eight Wall Street banks are facing an investigation following allegations that they provided misleading information to several ratings agencies in order to gain a better rating for mortgage securities. New York Attorney General, Andrew Cuomo, has launched the investigation and the banks under scrutiny are Goldman Sachs, Morgan Stanley, UBS AG, Citigroup, Credit Suisse, Deutsche [...]

BoA reports Q1 profits

BoA reports Q1 profits

Bank of America (BoA) has today reported its first quarter earnings, rising 0.7% to $2.83 billion (£1.83 billion) from $2.81 billion a year ago, boosted by record sales and trading activity at its investment bank, as well as its acquisition of Merrill Lynch. However, the bank posted a $2.1 billion loss in its home mortgage [...]

Bank of America sued over Merrill Lynch takeover

Bank of America sued over Merrill Lynch takeover

US banking giant, Bank of America (BoA), has been sued by the New York Attorney General, Andrew Cuomo, for defrauding investors and the Government over its takeover of Merrill Lynch. BoA, and two of its senior executives, Ken Lewis and Joseph Price, have been accused of “enormous fraud” on taxpayers and shareholders over the takeover [...]

Citigroup reports quarterly loss and plans to split into two businesses

Citigroup reports quarterly loss and plans to split into two businesses

US banking giant Citigroup has today announced a worse-than-expected fourth quarter net loss of $8.29 billion (£5.6 billion) and said it plans to split the firm into two separate businesses to restore profitability. The bank’s net loss for the last quarter of 2008 works out at $1.72 per share, far worse than most analysts’ forecasts [...]

Bank of America receive $20bn cash injection

Bank of America receive $20bn cash injection

Emergency funding of $20 billion (£13.4 billion) has been provided to Bank of America after it shares plummeted 17.5% yesterday amid speculation that the bank might be nationalised. In return for the cash injection, the bank must adhere to strict restrictions on senior management pay. Bank of America has been one of the strongest in [...]

Job losses at Barclays and Bank of America

Job losses at Barclays and Bank of America

A survey by the Confederation of British Industry (CBI) this week revealed that financial services companies are suffering record falls in profits. As a result, the CBI said job losses in the financial sector will rise sharply during the first quarter of 2009. The prediction has so far rang true after British banking giant Barclays [...]

Jobs go in Merrill Lynch / BoA merger

Jobs go in Merrill Lynch / BoA merger

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 [...]

Bank of America reaches £28bn deal with Merrill Lynch

Bank of America reaches £28bn deal with Merrill Lynch

A new financial giant has been created as Bank of America confirmed it is to buy Merrill Lynch in a deal worth $50 billion (£28 billion), subject to the approval of shareholders and regulators. The deal will result in the new financial services giant involved in everything ranging from fixed-income trading to stock underwriting to [...]

Merrill Lynch to shed 4,000 jobs globally

Merrill Lynch to shed 4,000 jobs globally

The world’s largest stockbroker, Merrill Lynch, has announced it is to axe 4,000 jobs worldwide with up to 400 of its 4,500 London staff facing redundancy. The job cuts are as a result of poor risk management for Merrill’s over-exposure to bad sub-prime mortgage debt. Merrill also announced heavy losses from the first quarter of [...]

US banks to reveal additional sub-prime write-downs

US banks to reveal additional sub-prime write-downs

US investment banks, Citigroup and Merrill Lynch, are to announce further sub-prime write-downs totalling $15 billion (£7.6 billion). Citigroup is expected to take a $10 billion hit to its accounts which will take the bank to a first-quarter loss of nearly $3 billion. Many analysts believe Citigroup’s write-downs could reach as high as $12 billion. [...]