Merrill Employees Worried?

People are talking about ML's investment bankers, not brokers. Good people will be kept at both firms.

As the above poster mentioned, the real question is who will be retained within the investment banking and capital markets divisions.

i'm an analyst at Merrill and needless to say we're all pretty worried
although many claim boa to have a subpar IB operation i doubt they would drop its securities unit in its entirety

we're expecting cuts at all levels (even deep cuts at the analyst level...too much overlap)

From what I've been told, their IB has a strong high yield/leverage finance platform and a pretty good heathcare team. Does anyone know what BofA's better money making areas of IB are?

Healthcare and GIG

real estate, lev fin and healthcare

GIG is not strong. Its Healthcare and Lev Fin. Real Estate is just a bit behind.

Healthcare is one of BofA's biggest groups, if not the biggest. But they tend to do smaller deals, and the healthcare group at Merrill is very strong - much better than BofA. I'll be interested to see how that plays out.

BofA Sponsor and Industry guys pitched to us yesterday and obviously the merger dominated the conversation. They seemed very optimistic (not that I'd expect anything else) but talked much more about the brokerage business than the IBD.

I think people would be CRAZY not to be worried for their jobs.

"We are lawyers! We sue people! Occasionally, we get aggressive and garnish wages, but WE DO NOT ABDUCT!" -Boston Legal-

http://www.forbes.com/afxnewslimited/feeds/afx/2008/11/08/afx5667861.htm...

This seems like good news for MER incoming class. Does anyone else have any updates on what's going on for both MER and BAC 1st years?

ML summer interns who got offers got their sign on bonuses recently so thats a positive sign.

A buddy of mine was kept at ML after the merg. He is top tier material.

Kept at ML? The merger hasn't even officially gone through yet, there hasn't been any word on BoA's side how many interns they are keeping as they are operating as two separate companies atm.

It's a good sign that they got their bonus, but I'm almost positive people on both sides should be weary, because there will be cuts in the incoming class.

I still, for the life of me, do not understand why BofA handed out a considerable amount of FT offers during fall recruiting.

Sure, they are acting as 2 separate entities, but you would think BofA had the sense of mind to halt recruiting, knowing that there will be 2 large classes to sort out.

So BofA had an IBD superday on the 31st. Total attendees: >40. Offers extended: 0

hard times.

I am speaking with what he has told me.. Im assuming he hasn't heard anything yet. Any ideas when they are expecting to release details as to how many ML employees they plan to let go?

ML interns getting their signing bonuses is not necessarily a good sign, but rather a neutral one.

It clearly states in the contract that the bonus has to be paid out within 60 days of signing. So if you signed in August, then you had to get your bonus no later than October.

All it means is that they are not considering rescinding any offers as of today, which is a good sign but we already knew that because recruiters were calling all interns with offers (after the merger announcement) that their offers are safe. And that info was already posted on WSO.

B of A and ML will probably not worry about what to do with the incoming analyst class until after the merger goes through sometime in 2009, they have work out macro level issues first before they get into details like what to do with the incoming analyst class.

So it was obvious that bonuses would be paid out. I am more worried about what may happen (with the merger, economy, regulation etc.) during 2009 as July approaches.

I'd say it is a good sign. Merrill just lost an economic incentive to cut people loose.

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CompBanker

Chelsea how do you know 0 were given out? if they gave out 0, why did they even have the superday?

Banks do that all the time. They go through the motions of fall recruiting and do not hire anyone...just show up to maintain a presence.

I'd say it is a sunk cost, and it is completely irrelevent in the (future) decision making process.

However, ibanks stopped (or substantially lowered) hiring incoming analysts and associates during the tech-bubble burst in 2000-2002, and when the market turned around they had a huge gap at the VP level during 2005-2006.

Therefore, I do not think that banks will make that same mistake again, and they will honor the offers that they gave out because it is good business in the long run.

Guys,

BOA, as one of the few banks hiring, would have their pick of a lot of kids they previously would not be able to get (kids from HYPS etc.). Thus, I think if you have a full-time offer from them, you are safe.

Given that, I would be a bit more nervous if I was a ML 1st year...

ML first years are in a much better position than their counterparts. Did you see how many ML guys are running the show in S&T. Something like 12 out of 15 group heads are ML guys. Expect similar outcomes from investment banking in over the next few weeks. ML's running the show across the board in IB, S&T, and PWM. You think group heads are going to get rid of all their own ppl? They recruited them.

Would be much more worried if you're a BofAer.

agreed. boa just isnt that great of a bank. keep the better people. ml has the better people. therefore, boa ppl should worry.

ML is cutting back on hiring...but BOA offers made to Class of 2009 are probably the most solid offers possible right now...