Merrill Lynch Wiki

[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, CEO of the New York Stock Exchange, succeeded him as CEO on December 1, 2007. On January 17, 2008, Merrill Lynch reported a $9.83 billion fourth quarter loss incorporating a $16.7 billion write down of assets associated with subprime mortgages.

[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 Financial Data Services, Inc., transfer agency Merrill Lynch Europe PLC, soon to be rolled up into Merrill Lynch International Merrill Lynch, Pierce, Fenner &Smith Incorporated (PFS) Merrill Lynch Bank USA Merrill Lynch Bank &Trust Co., FSB Merrill Lynch International (MLI) Merrill Lynch Government Securities, Inc (GSI) Merill Lynch Japan (MLJ), soon to be rolled up into Merrill Lynch International Merrill Lynch Canada (MLC), soon to be rolled up into Merrill Lynch International Merrill Lynch (India) Technology Services (MLITS)

[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 New York City, New York, U.S., global headquarters Atlanta, Georgia, U.S., Global Markets &Investment Banking Group, supporting North American operations Boston, Massachusetts, U.S., Global Markets &Investment Banking Group Chicago, Illinois U.S., Global Markets &Investment Banking Group, supporting North American Operations City of Industry, California, U.S., Global Private Client, International Office for Asian U.S. Markets Hopewell, New Jersey U.S., Global Infrastructure Solutions, Global Markets &Investment Banking, Global Private Client, the Chief Financial Office, Office of General Counsel, and Leadership &Talent Management Houston, Texas, Global Markets &Investment Banking Group Jacksonville, Florida, U.S., Global Infrastructure Solutions, Global Markets &Investment Banking, Global Private Client, the Chief Financial Office, Office of General Counsel, and Leadership &Talent Management Jersey City, New Jersey U.S., Global Markets &Investment Banking Group, supporting North American Operations Miami, Florida U.S., Global Private Client, Regional Headquarters for Latin American Operations Los Angeles, California, Global Markets &Investment Banking Group Palo Alto, California, Global Markets &Investment Banking Group Princeton, New Jersey, U.S., corporate center, supporting North American Operations San Francisco, California, Global Markets &Investment Banking Group Singapore, corporate center, supporting Asian Pacific Rim (APR) operations, namely Hong Kong &Tokyo London, UK, European headquarters Frankfurt, Germany, Global Markets &Investment Banking Group for Germany and Austria Toronto, Canada Sydney, Australia Hong Kong, PRC Tokyo, Japan Tel Aviv, Israel Zurich, Switzerland Mumbai, India Chennai, India Mexico City, Mexico Camberley, Europe Information Technology center

[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.

[citation needed]

[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 by African American employees 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 members of the firm were intentional and committed with malice. Yonathan Epelbaum, James Gatheral and Kishor Laud are among Merrill managers named in the ongoing lawsuit. 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 Herbert M. Allison - CEO and chairman of TIAA-CREF Peter Bacanovic - Martha Stewart's stockbroker Henry Blodget - financial analyst W. Edmund Clark - CEO of Toronto-Dominion Bank William A. Emerson, former Senior Vice President for Merrill Lynch Scott T. Ford - CEO of Alltel Joseph J. Grano, Jr. - President of Paine Webber Anshu Jain - Head of Global Markets at Deutsche Bank Mary Meeker - financial analyst Joe Moglia - CEO of TD Ameritrade John A. Mulheren - stock trader George Murnane III - CFO of Mesa Air Group Ashwin Navin - co-founder of BitTorrent Jack Tramiel - founder of Commodore International Winthrop H. Smith, Jr. - Chairman, WHS Holdings, LLC

[edit] Politics and public service Dan Crippen - Director of the Congressional Budget Office (1999-2003) Andrew J. Duck - 2002 U.S. congressional candidate Harold Ford, Jr. - 2006 U.S. Senate candidate, named a Vice Chairman in January 2007 John Key - Member of the New Zealand House of Representatives (2001-present), Leader of the Opposition (2006-present) William J. McDonough - President of the Federal Reserve Bank of New York (1999-2003) Donald Regan - U.S. Secretary of the Treasury (1981-85), White House Chief of Staff (1985-87) Mark S. Schweiker - Governor of Pennsylvania (2001-2003) Jyotiraditya Madhavrao Scindia - Member of the Indian Lok Sabha (2002-present) Milen Velchev - Finance Minister of Bulgaria (2001-2005)

[edit] Other Lee Bienstock - contestant, The Apprentice 5 Douglas Cliggott - economist Kendall Duane Cross - Olympic wrestler Gregory Allen Howard - screenwriter Norman Kay - bridge player C. John McCloskey - Opus Dei priest Halsey Minor - founder of CNET Irene Ng - child actress Mary O'Grady - editor of the Wall Street Journal Suze Orman - financial advisor James Parrish - professional football player Robert Prechter - economist Josh Markovic Rothschild - philanthropist Bernard Ramsey - philanthropist William Schreyer - philanthropist

[edit] Merrill family Peter Magowan, Safeway chairman, baseball team owner James Merrill (1926-1995), poet

[edit] Fictional Jack Ryan - character created by Tom Clancy Phoebe Buffay in a "What If?" episode of Friends - "The One that Could Have Been".

[edit] Works about Merrill Lynch Stiles, Paul (1998). Riding the Bull: My Year in the Madness at Merrill Lynch. New York: Times Business. ISBN 0-812-92789-3.  Perkins, Edwin (1999). Wall Street to Main Street: Charles Merrill and Middle-Class Investors. New York: Cambridge University Press. ISBN 0-521-63029-0.  Schooley, Keith (2002). Merrill Lynch: The Cost Could Be Fatal: My War Against Wall Street's Giant. Enid: Lakepointe Publishing. ISBN 0-971-61036-3. 

[edit] See also Global settlement Primary dealers World Wealth Report Merrill Lynch, Pierce, Fenner &Smith, Inc. v. Dabit , a 2006 Supreme Court case involving securities fraud claims.

[edit] Cites ^ "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. ^ "$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. ^ "Revising a Sonorous Piece of Americana: Merrill Lynch, Pierce, Fenner and Smith." The New York Times, December 31, 1957, p. 29 ^ http://askmerrill.ml.com/fa_front/1,2280,,00.html?pg=pcu ^ Edwin J. Perkins, Wall Street to Main Street: Charles Merrill and Middle-Class Investors, Cambridge University Press: 1999 ^ Ron Chernow, The House of Morgan, Touchstone Books, 1990. ^ 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." ^ http://www.tijd.be/nieuws/ondernemingen/financien/artikel.asp?Id=3331161 ^ NASD News Release ^ U.S. Sues Merrill on Treatment of Muslim ^ http://online.wsj.com/public/resources/documents/eeoc062607mer1.pdf EEOC vs. Merrill Lynch $ Co. - Complaint ^ Liddle &Robinson L.L.P. Press Release ^ Discrimination Ruling Another Black Eye for Merrill ^ Fired Iranian broker wins $1.6M from Merrill ^ 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  €¢ 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  €¢ Wachovia

[edit] External links Official Website CNN Article - Merrill Lynch settling conflict of interest charges Yahoo! Finance - Merrill Lynch &Co., Inc. Company Profile Google Finance - Merrill Lynch profile, market charts, blog posts &discussions Merrill Lynch global careers site Retrieved from "http://en.wikipedia.org/wiki/Merrill_Lynch" Categories: Companies listed on the New York Stock Exchange | Companies listed on the Tokyo Stock Exchange | All articles with unsourced statements | Articles with unsourced statements since January 2008 | Companies established in 1914 | Merrill Lynch | Investment banks | Companies based in New York City | Banks of the United States | Financial services companies of the United States