Are Bank of America and Merrill Lynch too close?

Reblogged from Credit where it's due:

Merrill Lynch is now an unguaranteed subsidiary of Bank of Merrill Lynch. While everyone seems to have understood the subsidiary apect of this, a lot less focus has been placed on the unguaranteed part.

Merrill Lynch is a capitals market bank, with very little in the way of deposits and little in the way of divergence of investments from trade related businesses; Bank of America on the other hand is a universal bank, cash deposits make up around 50% of its consolidated liabilities, has a much wider source of funding and assets.

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One thought on “Are Bank of America and Merrill Lynch too close?

  1. Pingback: 2 things crucial to the future of your business: the local economy and what you value most « power of language blog: partnering with reality by JR Fibonacci

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