Bank of America tries Merrill merger

August 22, 2013

Financial professionals in California and around the world may have recently learned that Bank of America may be considered merging its division of Merrill Lynch into the bigger firm. Merrill executives reported that the new business formation could occur possibly as early as the fourth quarter of 2013. It was a move that could allow Merrill to continue operations but streamline some BoA subsidiaries. A bank spokesman said that the merger would reduce the number of "legal entities" under the name of Bank of America. He added that the Merrill Lynch name as well as the way their clients and customers were served would remain unchanged.

Under this plan, Bank of America would take on all of Merrill Lynch's obligations, which include outstanding foreign and domestic debt securities. As of the second quarter of 2013, the highly profitable brokerage reportedly had about $62 billion in long-term debt. The brokerage had earlier absorbed the bank's securities unit.

An industry report said that the possible merger appeared to be meant to satisfy some of Bank of America's recent efficiency initiatives. It added that "less complex structures" would be expected to increase the success of "resolution planning" as stipulated by living wills, which were required of major banks as part of the Dodd-Frank financial reform act.

From the biggest multi-state corporation in the world to the newest startup in California, the business formation of a corporation or LLC is something that requires thorough and knowledgeable execution. An attorney experienced in entity formation, business mergers and business acquisitions may be helpful for filing the right paperwork on time. Such a lawyer may also assist with the establishment of a joint venture, limited partnership or other corporate entities.

Source: USA Today, "Merrill may merge fully into Bank of America", Kevin McCoy, August 16, 2013