Four years after purchasing Merrill Lynch, Bank of America (BAC) said it will end investment bank’s days as a separate legal entity. Bloomberg has the details:
AP Bank of America Corp., the second-biggest U.S. lender, plans to merge its Merrill Lynch subsidiary into the parent company to reduce complexity and costs.
The move could happen as early as the fourth quarter and means Charlotte, North Carolina-based Bank of America assumes all the investment bank's obligations and debt, Merrill Lynch said in an Aug. 2 filing. Dissolving the legal entity also ends Merrill Lynch's need to file separate regulatory disclosures.
Shares of Bank of America have gained 1% to $14.47 today, while JPMorgan Chase (JPM) has risen 0.7% to $53.66, Citigroup (C) has ticked up 0.3% to $51.01 and Wells Fargo (WFC) is up 0.3% to $43.13. The Financial Select Sector SPDR ETF (XLF) has gained 0.5% to $20.16.
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