Lehman Bankruptcy? Bank of America / Merrill Lynch merger?

Question

Quite a Sunday, eh folks?

LEH: 0
BAC+MER: 1??

FT: Barclays pulls out from Lehman rescue talks  
 https://www.ft.com/cms/s/0/fe37285e-8282-11dd-a019-000077b07658.html 
 
 Dealbreaker: Bloomberg is reporting that Bank of America is walking away from the deal for Lehman  
 https://dealbreaker.com/2008/09/breaking-reuters-is-reporting.php 
 
 WSJ: Bank of America, Merrill Lynch in Merger Talks  
 https://online.wsj.com/article/SB122142278543033525.html?mod=special_coverage  (subscription)
 https://dealbook.blogs.nytimes.com/2008/09/14/bank-of-america-in-talks-to-buy-merrill-lynch/index.html?hp

togafoot · Answer

Hold onto your hats... stock market tumble imminent (again). Govt. Bonds on the up as people rush to safe havens, and FX carry trades unwind further as people become increasingly risk averse for now.

solaris1 · Answer

It's done - BAC is buying MER. :shock:

I did not see this coming.

trader1 · Answer

`Tectonic' Shift on Wall Street as Lehman Fails, Merrill Sold

https://www.bloomberg.com/apps/news?pid= ... refer=home

Fed Widens Collateral, Banks Set Up $70 Billion Fund

https://www.bloomberg.com/apps/news?pid= ... refer=home

Good luck to everyone trying to find a job in financial services

solaris1 · Answer

I've been up all night and I don't even work in investment banking anymore! I can't believe this thread hasn't gotten more attention here. Huge ramifications for current and prospective MBAs!

People have been posting SC and DS questions instead... :roll:

bsd_lover · Answer

I'm almost glad that I got dinged everywhere last year atm. Will give me some more time to look in the direction the whole industry is going before committing to it. Sad part is that I met a few UChicago students last year with FT offers from Lehman. I feel for them

pm4553 · Answer

Oh boy! this hurts. I didn't see ML+BofA coming, its totally unexpected. 
Big news

Bear+JPM
ML+BofA
Lehman??
Freddie Mac?

I wonder who's next?BNPP..MS/GS...they are the only biggies left.

incognito1 · Answer

Big news with major implications for everyone, no doubt. I'd imagine most of us are not sure what to expect at this point, since the whole thing is unravelling rather quickly

trader1 · Answer

I think it's time to get serious about those Strategic Planning, Business Development, and General Management positions at industrial companies :-D

For those that are adamant about going into financial services post-MBA, you should have a good network of contacts in order to have a decent chance. The competition is greatly increasing with all the layoffs that have occurred and will continue to occur. The most important differentiating factor (in my opinion) will be who you know and how well your network will be able to help you land a job in this field.

solaris1 · Answer

Looks like the era of the independent investment bank is over. MS and GS just turned into bank holding companies!

Morgan Stanley and Goldman Sachs ATMs coming to a strip mall near you. Citi and JPMChase are going to be bummed about the extra competition. :lol:

https://calculatedrisk.blogspot.com/2008/09/fed-goldman-sachs-morgan-stanley-to-be.html

https://calculatedrisk.blogspot.com/2008/09/fed-goldman-sachs-morgan-stanley-to-be.html

togafoot · Answer

There is still Nomura!

The Japanese IB has expanded into the rest of Asia and Europe with its acquisition of Lehman's Asia and European assets. I believe they are now the worlds largest independent IB.

edwarise · Answer

Another one of the world biggest IB now is Renessans, Moscow.

Anyway, who is going to work in IB now? So many guys spent their lives for nothing.

Lehman Bankruptcy? Bank of America / Merrill Lynch merger?

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