Open

Coming up

Don't miss

Replay


LATEST SHOWS

WEB NEWS

Trash collection goes high tech

Read more

WEB NEWS

Web users react to escalating violence in Gaza

Read more

FASHION

Paris, Haute Couture Fall/Winter 2014-2015.

Read more

REPORTERS

Exclusive: an unlikely victim of the 'War on Terror'

Read more

AFRICA NEWS

2014-07-11 21:47 AFRICA NEWS

Read more

MEDIAWATCH

Finally, a good use for new app "Yo"

Read more

THE WORLD THIS WEEK

The World This Week - 11 July 2014 (part 2)

Read more

THE WORLD THIS WEEK

The World This Week - 11 July 2014

Read more

#THE 51%

Sweden: A Feminist's Paradise?

Read more

  • Major differences remain as deadline looms in Iran nuclear talks

    Read more

  • Germany vs Argentina - history and genius clash in World Cup final

    Read more

  • Israeli navy attacks Hamas base as tanks line up along Gaza border

    Read more

  • Germany’s Tony Martin wins ninth stage of Tour de France

    Read more

  • French military to extend Mali 'counterterrorism' operations into Sahel

    Read more

  • Boko Haram claims Nigeria attacks and supports Iraqi militants

    Read more

  • Paris’s Bastille Day fireworks ‘an homage to victims’ of WWI

    Read more

  • French court lifts mayor’s ban on Muslim hijab at beach

    Read more

  • Shells land in Russia as eastern Ukrainians flee fighting

    Read more

  • Rival Libyan militias exchange heavy fire at Tripoli airport

    Read more

  • Holland beat hosts Brazil 3-0 to finish third in World Cup

    Read more

  • Iraqi parliament fails to agree on new leadership

    Read more

  • Afghan presidential candidates agree to full vote audit, Kerry says

    Read more

  • Last of the Ramones, Tommy Ramone, dies aged 62

    Read more

  • Video: Outrage in wake of deadly Casablanca buildings collapse

    Read more

Business

FED approves Bank of America takeover of Merrill Lynch

©

Text by AFP

Latest update : 2008-12-08

The US Federal Reserve has approved the takeover of troubled investment bank Merrill Lynch by the Bank of America. This 50 billion dollar stock acquisition will make BoA the biggest US banking and financial firm.

The Federal Reserve on Wednesday gave formal approval to Bank of America's acquisition of Merrill Lynch, the Wall Street icon battered by the housing and credit crisis.
  
The 50-billion-dollar stock acquisition had been announced in September at the same time rival Lehman Brothers collapsed and fears were rising over the survival of Merrill, the brokerage giant with the bull sculpture outside its Wall Street headquarters.
  
On finalizing the deal, Bank of America would bolster its position as the largest US banking and financial firm with assets of 2.7 trillion dollars.
  
Bank of America, based in Charlotte, North Carolina, would control deposits of some 852 billion dollars, or 11.9 percent of the US total.
  
But the Fed said its review along with that of the Department of Justice concluded that the deal would not harm competition, since the two firms have little overlapping banking activity in major markets and Merrill's main activity is in the brokerage sector.
  
Merrill Lynch was seeking a lifeline with its shares tumbling some 78 percent over the past year on fears of snowballing losses from the subprime real estate meltdown and global credit squeeze.

Date created : 2008-11-26

Comments

COMMENT(S)