Bank of America
The history of Bank of America dates back to October 17, 1904, when Amadeo Pietro Giannini founded the Bank of Italy in San Francisco. The Bank of Italy served the needs of many immigrants settling in the United States at that time, a service denied to them by the existing American banks who were typically discriminatory and often denied service to all but the wealthiest. Giannini was raised by his mother and stepfather Lorenzo Scatena, as his father was fatally shot over a pay dispute with an employee. When the 1906 San Francisco earthquake struck, Giannini was able to save all deposits out of the bank building and away from the fires. Because San Francisco's banks were in smoldering ruins and unable to open their vaults, Giannini was able to use the rescued funds to commence lending within a few days of the disaster. From a makeshift desk consisting of a few planks over two barrels, he lent money to those who wished to rebuild.
In 1928, Giannini merged his bank with Bank of America, Los Angeles, headed by Orra E. Monnette and consolidated it with other bank holdings to create what would become the largest banking institution in the country. Bank of Italy was renamed on November 3, 1930, calling it Bank of America National Trust and Savings Association, which was the only such designated bank in the nation at that time. The resulting company was headed by Giannini and Monnette serving as co-chairs
Bank of America expanded outside California in 1983 with its acquisition of Seafirst Corporation of Seattle, Washington, and its wholly owned banking subsidiary, Seattle-First National Bank. Seafirst was at risk of seizure by the federal government after becoming insolvent due to a series of bad loans to the oil industry. BankAmerica continued to operate its new subsidiary as Seafirst rather than Bank of America until the 1998 merger with NationsBank.
Merrill Lynch
The company was founded on January 6, 1914, when Charles E. Merril opened his Charles E. Merrill & Co. for business at 7 Wall Street in New York City. A few months later, Merrill's friend, Edmund C. Lynch, joined him, and in 1915 the name was officially changed to Merrill, Lynch & Co. At that time, the firm's name included a comma between Merrill and Lynch. In 1916, Winthrop H. Smith joined the firm.
In its early history, Merrill, Lynch & Co. made several successful investments. In 1921, the company purchased Pathé Exchange, which later became RKO Pictures. In 1926, the firm made its most significant financial investment at the time, purchasing a controlling interest in Safeway, transforming the small grocery store into the country's third largest grocery store chain by the early 1930s.
In 1930, Charles Merril led the firm through a major restructuring, spinning-off the company's retail brokerage business to E.A. Pierce & Co. to focus on investment banking.
In November 2007, Merrill Lynch announced it would write-down $8.4 billion in losses associated with the national housing crisis. In July 2008, the company announced $4.9 billion fourth quarter losses for the company from defaults and bad investments in the ongoing mortgage crisis. In one year between July 2007 and July 2008, Merrill Lynch lost $19.2 billion, or $52 million daily. The company's stock price had also declined significantly during that time. Two weeks later, the company announced the sale of select hedge funds and securities in an effort to reduce their exposure to mortgage related investments.
Merrill Lynch, like many other banks, became heavily involved in the mortgage-based collateralized debt obligation (CDO) market in the early 2000s. According to an article in Credit magazine, Merrill's rise to be the leader of the CDO market began in 2003 when Christopher Ricciardi brought his CDO team from Credit Suisse First Boston to Merrill.
Between 2006 and 2007, Merrill was "lead underwriter" on 136 CDOs worth $93 billion. By the end of 2007, the value of these CDOs was collapsing, but Merrill had held onto portions of them, creating billions of dollars in losses for the company. In mid-2008, Merrill sold a group of CDOs that had once been valued at $30.6 billion to Lone Star Funds for $1.7 billion in cash and a $5.1 billion loan.
Significant losses were attributed to the drop in value of its large and unhedged mortgage portfolio in the form of collateralized debt obligations. Trading partners' loss of confidence in Merrill Lynch's solvency and ability to refinance short-term debt ultimately led to its sale. During the week of September 8, 2008 Lehman Brothers, came under severe liquidity pressures, with its survival in question. If Lehman Brothers failed, investors were afraid that the contagion could spread to the other surviving investment banks. (Lehman Brothers filed bankruptcy on September 15, 2008, after government officials could not find a merger partner for it.)
Versão em português:
O Bank of America foi fundado por Amadeo Peter Giannini em 1904 e tem sede em Charlotte, Carolina do Norte. O Bank of America ostenta US$ 2,32 bilhões (R$ 8,58 bilhões) em ativos. Suas operações incluem serviços bancários para o consumidor, administração de ativos e investimentos globais, mercados globais, ativos legais e divisões de serviço.
O BofA. está associado decisivamente à crise financeira de 2008, quando recebeu um aporte do governo, por suas próprias ações e pelas de duas empresas que adquiriu em 2008: Countrywide Financial e a Merrill Lynch. O Tesouro americano fez aporte de US$ 183 bilhões ao Bank of America, para ajudar a instituição a digerir a compra do Merrill Lynch.
A calamidade gerada a partir de Wall Street colocou diante dos olhos do público uma oferta ilimitada de histórias de horror. Stanley O'Neal, presidente do Merril Lynch, recebeu 160 milhões de dólares em outubro de 2007, quando foi demitido da empresa - que acabaria sendo vendida em setembro de 2008, no auge da crise, para o Bank of America, por um preço 70% inferior ao que tinha no início de 2007.
(Fonte: revista Exame - 05.11.2008 / IstoÉDinheiro - 21.01.2009 - parte)
The history of Bank of America dates back to October 17, 1904, when Amadeo Pietro Giannini founded the Bank of Italy in San Francisco. The Bank of Italy served the needs of many immigrants settling in the United States at that time, a service denied to them by the existing American banks who were typically discriminatory and often denied service to all but the wealthiest. Giannini was raised by his mother and stepfather Lorenzo Scatena, as his father was fatally shot over a pay dispute with an employee. When the 1906 San Francisco earthquake struck, Giannini was able to save all deposits out of the bank building and away from the fires. Because San Francisco's banks were in smoldering ruins and unable to open their vaults, Giannini was able to use the rescued funds to commence lending within a few days of the disaster. From a makeshift desk consisting of a few planks over two barrels, he lent money to those who wished to rebuild.
In 1928, Giannini merged his bank with Bank of America, Los Angeles, headed by Orra E. Monnette and consolidated it with other bank holdings to create what would become the largest banking institution in the country. Bank of Italy was renamed on November 3, 1930, calling it Bank of America National Trust and Savings Association, which was the only such designated bank in the nation at that time. The resulting company was headed by Giannini and Monnette serving as co-chairs
Bank of America expanded outside California in 1983 with its acquisition of Seafirst Corporation of Seattle, Washington, and its wholly owned banking subsidiary, Seattle-First National Bank. Seafirst was at risk of seizure by the federal government after becoming insolvent due to a series of bad loans to the oil industry. BankAmerica continued to operate its new subsidiary as Seafirst rather than Bank of America until the 1998 merger with NationsBank.
Merrill Lynch
The company was founded on January 6, 1914, when Charles E. Merril opened his Charles E. Merrill & Co. for business at 7 Wall Street in New York City. A few months later, Merrill's friend, Edmund C. Lynch, joined him, and in 1915 the name was officially changed to Merrill, Lynch & Co. At that time, the firm's name included a comma between Merrill and Lynch. In 1916, Winthrop H. Smith joined the firm.
In its early history, Merrill, Lynch & Co. made several successful investments. In 1921, the company purchased Pathé Exchange, which later became RKO Pictures. In 1926, the firm made its most significant financial investment at the time, purchasing a controlling interest in Safeway, transforming the small grocery store into the country's third largest grocery store chain by the early 1930s.
In 1930, Charles Merril led the firm through a major restructuring, spinning-off the company's retail brokerage business to E.A. Pierce & Co. to focus on investment banking.
In November 2007, Merrill Lynch announced it would write-down $8.4 billion in losses associated with the national housing crisis. In July 2008, the company announced $4.9 billion fourth quarter losses for the company from defaults and bad investments in the ongoing mortgage crisis. In one year between July 2007 and July 2008, Merrill Lynch lost $19.2 billion, or $52 million daily. The company's stock price had also declined significantly during that time. Two weeks later, the company announced the sale of select hedge funds and securities in an effort to reduce their exposure to mortgage related investments.
Merrill Lynch, like many other banks, became heavily involved in the mortgage-based collateralized debt obligation (CDO) market in the early 2000s. According to an article in Credit magazine, Merrill's rise to be the leader of the CDO market began in 2003 when Christopher Ricciardi brought his CDO team from Credit Suisse First Boston to Merrill.
Between 2006 and 2007, Merrill was "lead underwriter" on 136 CDOs worth $93 billion. By the end of 2007, the value of these CDOs was collapsing, but Merrill had held onto portions of them, creating billions of dollars in losses for the company. In mid-2008, Merrill sold a group of CDOs that had once been valued at $30.6 billion to Lone Star Funds for $1.7 billion in cash and a $5.1 billion loan.
Significant losses were attributed to the drop in value of its large and unhedged mortgage portfolio in the form of collateralized debt obligations. Trading partners' loss of confidence in Merrill Lynch's solvency and ability to refinance short-term debt ultimately led to its sale. During the week of September 8, 2008 Lehman Brothers, came under severe liquidity pressures, with its survival in question. If Lehman Brothers failed, investors were afraid that the contagion could spread to the other surviving investment banks. (Lehman Brothers filed bankruptcy on September 15, 2008, after government officials could not find a merger partner for it.)
Bank of America Merrill Lynch
On Sunday, September 14, 2008, Bank of America announced it was in talks to purchase Merrill Lynch. Merrill Lynch & Co. agreed to be acquired by Bank of America at the height of the 2008 Financial Crisis. The acquisition was completed in January 2009 and Merrill Lynch & Co., Inc. was merged into Bank of America Corporation in October 2013, although certain Bank of America subsidiaries continue to carry the Merrill Lynch name, including the broker-dealer Merrill Lynch, Pierce, Fenner & Smith.
On Sunday, September 14, 2008, Bank of America announced it was in talks to purchase Merrill Lynch. Merrill Lynch & Co. agreed to be acquired by Bank of America at the height of the 2008 Financial Crisis. The acquisition was completed in January 2009 and Merrill Lynch & Co., Inc. was merged into Bank of America Corporation in October 2013, although certain Bank of America subsidiaries continue to carry the Merrill Lynch name, including the broker-dealer Merrill Lynch, Pierce, Fenner & Smith.
(Fonte: Wikipedia)
Versão em português:
O Bank of America foi fundado por Amadeo Peter Giannini em 1904 e tem sede em Charlotte, Carolina do Norte. O Bank of America ostenta US$ 2,32 bilhões (R$ 8,58 bilhões) em ativos. Suas operações incluem serviços bancários para o consumidor, administração de ativos e investimentos globais, mercados globais, ativos legais e divisões de serviço.
O BofA. está associado decisivamente à crise financeira de 2008, quando recebeu um aporte do governo, por suas próprias ações e pelas de duas empresas que adquiriu em 2008: Countrywide Financial e a Merrill Lynch. O Tesouro americano fez aporte de US$ 183 bilhões ao Bank of America, para ajudar a instituição a digerir a compra do Merrill Lynch.
A calamidade gerada a partir de Wall Street colocou diante dos olhos do público uma oferta ilimitada de histórias de horror. Stanley O'Neal, presidente do Merril Lynch, recebeu 160 milhões de dólares em outubro de 2007, quando foi demitido da empresa - que acabaria sendo vendida em setembro de 2008, no auge da crise, para o Bank of America, por um preço 70% inferior ao que tinha no início de 2007.
(Fonte: revista Exame - 05.11.2008 / IstoÉDinheiro - 21.01.2009 - parte)
Nenhum comentário:
Postar um comentário