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Information about Merrill Lynch

Merrill Lynch & Co., Inc.
Merrill Lynch logo
Public (NYSE: MER, TYO: 8675 )
Founded1914, as Charles E. Merrill & Co.
HeadquartersNew York, NY, U.S.
Key peopleStan O'Neal: CEO and Chairman of the Board
Ahmass Fakahany: President and Chief Operating Officer
Rosemary Berkery: Executive Vice President & General Counsel
Gregory J. Fleming: President and Chief Operating Officer
Jeffrey N. Edwards: CFO
John J. Fosina: Chief Control Officer
IndustryFinance and Insurance
ProductsFinancial Services
Revenue$70.59 Billion USD 2006
Net income$7.49 Billion USD 2006
Employees56,300
Websitewww.ml.com


Merrill Lynch & Co., Inc. (NYSE: MER TYO: 8675 ), through its subsidiaries and affiliates, provides capital markets services, investment banking and advisory services, wealth management, asset management, insurance, banking and related products and services on a global basis. The firm's global headquarters is located in New York City, and it is one of the most recognizable names in financial services. The company occupies the entire 34 stories of the Four World Financial Center building in Manhattan.

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, 1941, 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.

Business groups

  • GWM: Global Wealth Management
  • GMI: Global Markets & Investment Banking Group
  • As of September 29, 2006 Merrill Lynch Investment Managers was acquired 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)

Subsidiaries

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

Major locations

Major cases

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.

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.[8]

Discrimination and alleged racism charges

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.

In June 2007, the U.S. Equal Employment Opportunity Commission brought suit against Merrill alleging unfair treatment of its Muslim employees and allegations of Anti-Iranian sentiment. [9] [10] [11]

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.

Notable current and former employees

Business

Politics and public service

Other

Merrill family

Fictional

See also

Cites

1. ^ "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.
2. ^ "$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 a issue of bonds by Montana-Dakota Utilities Company.
3. ^ "Revising a Sonorous Piece of Americana: Merrill Lynch, Pierce, Fenner and Smith." The New York Times, December 31, 1957, p. 29
4. ^ [1]
5. ^ Edwin J. Perkins, Wall Street to Main Street: Charles Merrill and Middle-Class Investors, Cambridge University Press: 1999
6. ^ Ron Chernow, The House of Morgan, Touchstone Books, 1990.
7. ^ 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."
8. ^ NASD News Release
9. ^ [2]
10. ^ The New York Times, U.S. Sues Merrill on Treatment of Muslim , Published: June 27, 2007
11. ^ [3]

Competitors

External links

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Charles Edward Merrill (October 19, 1885 – October 6 1956) was a philanthropist, stockbroker and one of the founders of Merrill Lynch & Company.

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Charles E. Merrill, the son of physician Dr.
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E. Stanley "Stan" O'Neal is the present Chief Executive Officer and Chairman of the Board of Merrill Lynch & Co. Inc., having served in numerous senior management positions at the company prior to this appointment.
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Wealth Management is a term that originated in the 1990s in the US with the Broker Dealers, Banks, and Insurance Companies. Wealth Management has generally evolved from high net worth financial consulting for persons who are top clients of any firm.
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