BREAKING: B of A buys Merrill Lynch for 44 billion.

[cherokeeprogressive]

http://online.wsj.com/article/SB122142278543033525.html?mod=special_coverage

[NightWatcher]

1. I love how the movers and shakers make plays at 9PM on a Sunday

[CatholicEdHead]

3. Most people are still watching football

Or off to bed for an early morning in the markets.

[Renew Deal]

5. I think this was an emergency.

It's not just a normal sunday night.

[tekisui]

2. More bad news. The bigger they come the harder they fall,

and the more they take with them...

[Kurt_and_Hunter]

4. That's almost twice the stock capitalization

[pnwmom]

6. And the question is why? n/t

[BlooInBloo]

7. Keep in mind the purchase is in *stock*. As the stock price changes....

So does the nominal purchase price.

[pnwmom]

8. True. Maybe they're trying to account for a drop in BoA share price?

My sister was also telling me that derivative losses aren't shown in balance sheets, so Merrill is facing even greater losses than we know.

[BlooInBloo]

11. Yup. And moreover, if the sale takes place over a long period...

Merill will be worth a lot less as well.


EDIT: It's just a guess, tho. Another guess is that maybe Merill holds so much of BoA's paper, that BoAs stands to lose a LOT more if Merill goes under.

[Liberal_in_LA]

9. Did B of A just buy countrywide?

[stray cat]

12. yes

[lonestarnot]

13. aye eye aye.

[Jack Rabbit]

10. No Bull?