Merrill Lynch clients withdrew $10 billion in the fourth quarter, more than triple the pace of the previous three months, as stock markets sank and Bank of America Corp. moved to complete its acquisition of the New York- based firm.
From Bloomberg:
Merrill Lynch & Co. clients withdrew $10 billion in the fourth quarter, more than triple the pace of the previous three months, as stock markets sank and Bank of America Corp. moved to complete its acquisition of the New York- based firm.
The outflows increased from $3 billion in the third quarter, according to a Merrill filing yesterday with the U.S. Securities and Exchange Commission. Total clients assets, a figure that includes the declining value of investments, fell to $1.25 trillion from $1.48 trillion as the Dow Jones Industrial Average slid almost 20 percent.
The withdrawals underline pressure faced by Bank of America Chief Executive Officer Kenneth Lewis late last year as the severity of Merrill’s woes mounted. Government officials on Jan. 15 granted Bank of America a $138 billion package that includes a $20 billion infusion as well as asset guarantees.
Related
To read the full article, visit Bloomberg
Content from our partners
