Lehman's bust, Merrill's gone...

It's been enough news (leave alone whether it is good or bad) for one weekend. Lehman Brothers has gone bust and Bank of America (BofA) buys Merrill Lynch for 50b $. I knew Lehman was in bad state, and were looking for a suitor, but the quick sale of Merrill, almost a fire-sale, was a complete surprise to me. Early on a Monday, just before leaving for office (Incidentally, I work for Merrill) on a routine, quick glance at CNBC to check how SGX Nifty was performing, a flash news piece caught my attention. It said, BofA has offered 29 $ per share of Merrill and the two are in talks now, and I was confused all the way to office whether I saw it incorrectly, or was it CNBC who made a typo error. And the reports earlier that BofA was in talks with Lehman for deal, made me almost believe that CNBC was wrong. But simultaneously the news that Lehman would be filing for bankruptcy was flashing on screen, and I knew something was brewing in the Merrill camp too.

As soon as I reached office I got the news from my colleagues, that the deal is through and that Bank of America has taken over Merrill Lynch. Immediately, I sent messages, the text reading "Welcome to BofA" to most of my friends, who were caught completely unawares. The looks on their faces said it all, when they reached office. But among all this I was personally very unhappy at the turn of things :( Two companies, one of which is more than 150 years old and the other on the cusp of a century have gone for ever. Lehman Brothers, a 154 year old organization, which survived tougher times during the great depression, ceases to be an entity. Merrill Lynch, a 94 year firm, the most recognizable name on wall street, with the familiar Bull logo might cease to exist sooner or later! Rumours about imminent job-cuts, and jokes around this started doing the rounds. The whole day was a hell of an activity. After all, its not often that you see two financial giants fall in a single day! Dont know whats in store in the future, but as Scarlett says "After all...Tomorrow is another day!"