ML

This briefly came to mind when the merger was announced, but the curiosity has gotten the better of me, so I'm hoping the experts here can shed some light on this.

If some of you recall, FT (amongst others) ran an article in mid-August describing how Merill booked their credit derivative losses ($29B or so worth) though their UK subsidiary, where net losses can be carried forward to future years as a tax credit. (article here: http://www.ft.com/cms/s/0/369b723e-6a52-11dd-83e8-0000779fd18c.html)

After the merger, what becomes of this credit? (arguments against the validity of this accounting trick aside)

I'm assuming this will depend in part on the way the UK entity now fits inside the global corporate structure, something which I admittedly know next to nothing about right now.

Can you tell me what Thain is doing nowadays? Is he still at his job, working hard, or has he developed a nice case of senioritis since BofA had agreed to acquire the firm? Any idea where he'll head next if he leaves Merrill following the merger?

Feel free to PM...

Ok think high level now. BOA fire their own employee to keep ML's? What do u think will be the response internally! i am not talking about the high up people or the analyst. think about all the VPs who actually have a voice and is screaming right now. I would expect them to fire low to mid level ML people and replace it with BOA current ones. I know people will say that ML has better quality people, but quality only shows at high level. analyst is the same as the next guy. If you don;t think so, quite your job and see if your company...your division... your team miss a beat!

Just accepted a full-time Investment Banking offer at Bank of America. I assume a lot of ML analysts will have a tough time keeping their jobs, but how safe do you think people in my position will be?

Lehman Brothers to file for Chapter 11 bankruptcy spelling the end for the 158 year old firms. :(

http://online.wsj.com/public/us

Apologies for arriving late to the party! As I'm not currently in NY, I am a bit behind the news, but, boy, when I opened up WSJ/Dealbook/Dealbreaker/etc. this morning, what a an interesting mix of stories! I'm a was a bit flooded with mixed emotions: schadenfreude that my rival was about to go under, but compassion for my friends at the firm; sympathy that one of the firms for which I was rooting would be acquired by a second-tier shop; and growing concern over whether this will eventually affect me personally (even outside of NY, I'm seeing significant stagnation in dealflow...).

Sympathies to those affected, and I will try to remain a bit more tactful than usual, as it does suck to be in such a situation. If you want to hear my real thoughts, however, send me a PM and I'd be glad to share... as a hint, it involves the absurdiites and detriments of affirmative action.

So the question is, just how bad will tomorrow be? How bloody will tomorrow be.