Merrill Lynch

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Merrill Lynch & Co., Inc.
TypePublic (NYSE: MER, TYO: 8675)
Founded1914, as Charles E. Merrill & Co.
HeadquartersNew York, NY, U.S.
Key peopleJohn Thain: CEO
Ahmass Fakahany: President and Chief Operating Officer
Rosemary Berkery: Executive Vice President & General Counsel
Gregory J. Fleming: President and Chief Operating Officer
Nelson Chai: CFO
John J. Fosina: Chief Control Officer
IndustryFinance and Insurance
ProductsFinancial Services
Investment Banking
Investment Management
RevenueImage:Green Arrow Up Darker.svg$70.59 Billion USD 2006
Net incomeImage:Green Arrow Up Darker.svg$7.49 Billion USD 2006
Employees56,300
Websitewww.ml.com

Merrill Lynch & Co., Inc. (NYSE: MER TYO: 8675), through its subsidiaries and affiliates, provides capital markets services, investment banking and advisory services, wealth management, asset management, insurance, banking and related products and services worldwide. The firm's world headquarters is located in New York City. The company occupies the entire 34 stories of the Four World Financial Center building in Manhattan.

Contents

[edit] History

The company was founded on January 6, 1914, when Charles E. Merrill & Co. opened 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.[1] In 1916, Winthrop H. Smith joined the firm. In 1940, the firm merged with E. A. Pierce & Co. and Cassatt & Co. and was briefly known as Merrill Lynch, E. A. Pierce, and Cassatt.[2]

In 1941, Fenner & Beane joined the firm, and the name became Merrill Lynch, Pierce, Fenner & Beane. On December 31, 1957, The New York Times referred to that name as "a sonorous bit of Americana" and said "After sixteen years of popularizing [it], Merrill Lynch, Pierce, Fenner, and Beane is going to change it—and thereby honor the man who has been largely responsible for making the name of a brokerage house part of an American saga," Winthrop H. Smith, who had been running the company since 1940. At the start of the firm's fiscal year on March 1, 1958, the firm's name became Merrill Lynch, Pierce, Fenner & Smith.[3]

Merrill Lynch rose to prominence on the strength of its brokerage network (15,000+ as of 2006)[4], sometimes referred to as the "thundering herd", that allowed it to place securities it underwrote directly.[5] In contrast, many established Wall Street firms, such as Morgan Stanley, relied on selling groups of independent brokers for placement of the securities they underwrote.[6] Until as late as 1970, it was known as the "Catholic" firm of Wall Street.[7] The firm went public in 1971 and has since become a multinational corporation with over US $1.8 trillion in client assets, operating in more than 40 countries around the world. In 1978, it significantly buttressed its securities underwriting business by acquiring White Weld & Co., a small but prestigious old-line investment bank. Merrill Lynch is best known for its Global Private Client services and its strong sales force.

On November 1, 2007, Merrill Lynch CEO Stanley O'Neal left the company, after being criticized for the way he handled the subprime mortgage crisis, which resulted in about US $ 2.24 billion in unexpected losses, and for discussing in public the possible merger with Wachovia banking corporation, without being authorized by the board to do so. He left Merrill Lynch with about US $ 161 million worth of stock options and retirement benefits.[8]. John Thain succeeded him as CEO on December 1, 2007.

[edit] Business groups

  • GWM: Global Wealth Management
  • GMI: Global Markets & Investment Banking Group
  • As of September 29, 2006 Merrill Lynch Investment Managers, which was absorbed by BlackRock, Inc.. Merrill Lynch became BlackRock's largest stockholder in the transaction, with a 49 percent stake.
  • Corporate Resources
    • Global Securities Research and Economics Group (Research)
    • GIS: Global Infrastructure Solutions
    • OGC: Office of General Counsel
    • C&PA: Communications and Public Affairs
    • CFO: Chief Financial Office
    • LTM: Leadership & Talent Management (formerly Human Resources)

[edit] Subsidiaries

[edit] Internal Professional Networks

The Merrill Lynch Professional Networks (MLPN) are employee-driven networks, organized regionally both across and within business groups. The objectives include diversifing business development, recruitment and retention, and community leadership. Not all networks are available at all Merrill Lynch office locations. Out of the 17 listed networks, the Women's Professional Network in the has by far the most members and is the most active.

Networks Available for Employees in the U.S:

  • Asian Pacific American Professional Network
  • Black Professional Network
  • Disability Awareness Professional Network
  • Hispanic Professional Network
  • LGBT Professional Network
  • Native American Professional Network
  • South Asian Professional Network
  • Women's Professional Network

Networks Available for Employees in EMEA:

  • Black Professional Network
  • LGBT Professional Network
  • Women's Professional Network
  • Parents and Carers' Professional Network
  • South Asian Professional Network

Networks Available for Employees in PacRim:

  • LGBT Professional Network
  • Parents and Carers' Professional Network
  • Women's Professional Network
  • Young Professionals' Network

[edit] Major locations

[edit] Major cases

[edit] Analyst conflict-of-interest, 2002

In May 2002, a settlement was reached with then-Attorney General Eliot Spitzer of the State of New York, imposing a $100 million fine on Merrill Lynch, as well as an agreement to sever all links between analysts' pay and investment banking revenue. The settlement was related to wrongdoings by equity analyst Henry Blodget. In December 2002 the company was fined an additional $100 million.

[edit] Improper sale of Class B and C mutual fund shares

On Dec. 19, 2005, the NASD announced it had fined Merrill Lynch, Pierce, Fenner & Smith, Wells Fargo Investments and Linsco/Private Ledger Corporation a total of $19.4 million for suitability and supervisory violations related primarily to sales of Class B mutual fund shares as well as some Class C mutual fund shares. Merrill Lynch was fined $14 million.[9]

[edit] Discrimination and alleged racism charges

In July 2006, a lawsuit alleging discriminatory hiring and promotion practices was brought by over 70 current and former employees. Following commencement of the action, additional employees joined the suit and counsel is now seeking class-action status.

[edit] Violation of Civil Rights of Iranian-Muslim employees

On June 26 2007, the U.S. Equal Employment Opportunity Commission (EEOC) brought suit against Merrill Lynch,[10] alleging the firm discriminatied against Dr. Majid Borumand because of his Iranian nationality and Islamic religion, with "reckless disregard" for his protected civil rights.[11][12] The EEOC law suit maintains that violations by Merrill Lynch in this case were intentional and committed with malice. In another case concerning mistreatment of another Iranian employee by Merrill Lynch on July 20th, 2007, less than a month after EEOC law suit, a NASD arbitration panel ordered Merrill Lynch to pay its former Iranian employee, Fariborz Zojaji $1.6 million for firing him due to his Persian ethnicity.[13][14] Merrill Lynch's actions prompted reactions from both the Iranian-Americans National council, and the Arab-American Anti-Discrimination Committee.[15]

[edit] Recent Transactions

The purchase of San Jose, Calif. based First Franklin origination franchise and related servicing platform from National City Corp. NYSE: NCC was completed on Dec. 30th, 2006 for $1.3 billion.

[edit] Notable current and former employees

[edit] Business

[edit] Politics and public service

[edit] Other

[edit] Merrill family

[edit] Fictional

[edit] See also

[edit] Cites

  1. ^ "McCrory Stores Corporation," display advertisement, The New York Times, December 15, 1915, p. 18. In full: An Investment embracing safety, good income, and possibilities for considerable advancement in market value is presented in the Preferred Stock of the McCrory Stores Corporation. Price to yield 7%. Write for Circular T. M. MERRILL, LYNCH & CO. 7 Wall Street, NEW YORK. Penobscot Bldg. DETROIT. Telecphone Rector 4940.
  2. ^ "$15,000,000 Sought By Crucible Steel." The New York Times, December 19, 1940, p. 39, lists "Merrill Lynch, E. A. Pierce and Cassatt," with a single comma following Lynch and the word "and" rather than an ampersand, as one of a number of firms underwriting an issue of bonds by Montana-Dakota Utilities Company.
  3. ^ "Revising a Sonorous Piece of Americana: Merrill Lynch, Pierce, Fenner and Smith." The New York Times, December 31, 1957, p. 29
  4. ^ http://askmerrill.ml.com/fa_front/1,2280,,00.html?pg=pcu
  5. ^ Edwin J. Perkins, Wall Street to Main Street: Charles Merrill and Middle-Class Investors, Cambridge University Press: 1999
  6. ^ Ron Chernow, The House of Morgan, Touchstone Books, 1990.
  7. ^ James B. Stewart, Den of Thieves, Touchstone Books, 1992. "[I]n 1971, Wall Street was still split between the "Jewish" and the "WASP" firms. At an earlier time, when major corporations and banks had discriminated overtly against Jews, Wall Street had rewarded merit and enterprise. Firms like Goldman, Sachs, Lehman Brothers, and Kuhn Loeb (made up historically of Jews of German descent) had joined the ranks of the most prestigious WASP firms: Morgan Stanley—an outgrowth of J. P. Morgan's financial empire—First Boston, Dillon, Read, and Brown Brothers Harriman. Giant Merrill Lynch Pierce Fenner & Smith, something of an anomaly, had once been considered the "Catholic" firm. Kidder, Peabody remained firmly in the WASP camp."
  8. ^ http://www.tijd.be/nieuws/ondernemingen/financien/artikel.asp?Id=3331161
  9. ^ NASD News Release
  10. ^ U.S. Sues Merrill on Treatment of Muslim
  11. ^ http://online.wsj.com/public/resources/documents/eeoc062607mer1.pdf EEOC vs. Merrill Lynch $ Co. - Complaint
  12. ^ Liddle & Robinson L.L.P. Press Release
  13. ^ Discrimination Ruling Another Black Eye for Merrill
  14. ^ Fired Iranian broker wins $1.6M from Merrill
  15. ^ EEOC: Merrill Lynch Hired Iranian for His Brains, Fired Him for His Nationality
v • d • e
List of investment banks
ABN AMRO • Banc of America Securities • Barclays Capital • Bear Stearns • BNP Paribas • Citigroup • Credit Suisse • Deutsche Bank • Dresdner Kleinwort • Goldman Sachs  • Greenhill  • Hovde  • HSBC • JPMorgan Chase • JP Turner & Company  • Lazard • Lehman Brothers  • Macquarie Bank • Merrill Lynch • Morgan Stanley • Nomura Securities  • Raymond James  • Rothschild • RBC Capital Markets  • Thomas Weisel Partners  • UBS  • Veber Partners, LLC  • Wachovia

[edit] External links

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