Come to think of it, what happens to ML's huge UK tax credit post BofA?

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.

Comments (2)

Oct 6, 2008 - 5:28pm
arcanne, what's your opinion? Comment below:

Explicabo autem esse officiis eum laudantium. Ratione aut incidunt voluptate ad blanditiis et est consectetur. Dignissimos sint sit molestiae.

Consequuntur ut impedit esse nam sunt et eum. Et aperiam repudiandae laborum est ratione velit eaque. Qui est explicabo officia at rerum et rerum. Pariatur eum earum laborum alias atque.

Cum voluptas quia consectetur. Suscipit et doloribus eos vero sit. Aut nobis et non.

Cupiditate dolores excepturi laudantium velit perspiciatis tempora et modi. Voluptas eaque atque aut dolore ad nobis.

Banking > VC > Tech PE; PM me if you would like any advice I'm happy to help
Start Discussion

Popular Content See all

Techies: Stop Coping
+589IBby Works at D.E. Shaw
Let us WFH
+436IBby Analyst 2 in IB-M&A
What kind of car do you drive?
+196IBby harrison1bailey_1
Why Can’t it Just Crash Already
+141IBby Analyst 2 in IB-M&A
IB/PE with ADHD?
+64IBby Prospect in IB - Gen
Citi pay
+51IBby zoomafiazin
Why are nyc food delivery guys so short?
+43IBby Analyst 1 in IB - Cov
Message to VPs — Focus on Revenue
+35IBby Analyst 1 in IB-M&A

Career Advancement Opportunities

August 2022 Investment Banking

  • Jefferies & Company (▲05) 99.6%
  • Lincoln International (= =) 99.2%
  • RBC Capital Markets (▲09) 98.8%
  • Bank of America Merrill Lynch (▲03) 98.4%
  • Macquarie Group Limited ABN (+ +) 98.0%

Overall Employee Satisfaction

August 2022 Investment Banking

  • Lincoln International (▲06) 99.6%
  • Jefferies & Company (▲11) 99.2%
  • Greenhill (▲07) 98.8%
  • PJT Partners (▽03) 98.4%
  • Macquarie Group Limited ABN (▲22) 98.0%

Professional Growth Opportunities

August 2022 Investment Banking

  • Jefferies & Company (▲06) 99.6%
  • Lincoln International (▲03) 99.2%
  • RBC Capital Markets (▲12) 98.8%
  • Bank of America Merrill Lynch (▲05) 98.4%
  • William Blair (▽01) 98.0%

Total Avg Compensation

August 2022 Investment Banking

  • Director/MD (10) $613
  • Intern/Summer Analyst (308) $417
  • Vice President (38) $392
  • Associates (205) $256
  • 2nd Year Analyst (125) $163
  • 3rd+ Year Analyst (17) $156
  • 1st Year Analyst (407) $151
  • Intern/Summer Associate (80) $148