BofA buyout relieves Merrill reps
Merrill Lynch & Co. Inc. brokers are both saddened and relieved that their venerable firm is being taken over by Bank of America Corp.
Merrill Lynch & Co. Inc. brokers are both saddened and relieved that their venerable firm is being taken over by Bank of America Corp.
Representatives at New York-based Merrill Lynch said that chief executive John A. Thain had little choice but to seek a buyer, given the risks of inaction.
“At first, we were shocked. Then when we saw what happened to Lehman [Brothers Holdings Inc. of New York], we were relieved,” said a Merrill Lynch representative in the Southwest, who asked not to be identified.
“It’s been surprisingly calm here,” said a West Coast broker at the firm, who asked not to be identified. “We got thrown a lifeline.”
Some clients have been concerned, Merrill Lynch reps say, but for the most part, customers are also relieved.
“Bank of America is not an unknown name,” said a Merrill rep in the Northeast, who asked not to be identified. The deal is “a strength, as most clients see it,” he said.
Although recruiters immediately circled on the news that the firm was being sold, Merrill Lynch brokers expect that most of the firm’s sales force will remain intact, since the entire Street is in turmoil.
“Where else are [Merrill Lynch brokers] going to go?” asked the Northeast broker.
‘SAVED THEIR BUTTS’
Recruitment packages that include stock of competitors aren’t as attractive as they used to be, Merrill brokers said.
And for reps who hold substantial amounts of Merrill stock, the Bank of America deal “saved their butts,” the West Coast rep said.
“The stock would have gone to $10” instead of holding at just below $20 a share, before it moved higher last week on news of the government’s bailout plan for the industry, the rep added.
Brokers were told last week that they would get a retention package, but the details have yet to be worked out.
Bank of America is based in Charlotte, N.C.
E-mail Dan Jamieson at [email protected].
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