1.) Bank of America’s Acquisition of Merrill Lynch
This article talks about the serious financial losses that Merrill Lynch incurred in the year 2007 to2008, amounting to $8.4 billion by running its business of subprime mortgages. The subprime mortgages turned out to be high risk as housing prices dropped and subprime securities lost value. In order to augment its losses, Merrill Lynch decided to sell $31 billion worth of subprime securities for pennies on a dollar. However, such management decision was doomed which impelled the company to start merger talks with Bank of America. Bank of America agreed to buy Merrill Lynch for $50.3 billion in stock of $ ...