In September 2008, as Lehman Brothers had a hard time to make it through, John Thain, CEO of Merrill Lynch, recognized that his bank was likewise on the verge of failure. Throughout the weekend of September 13-14, 2008, Thain effectively worked out a handle Ken Lewis, CEO of Bank of America, for BofA to obtain Merrill. Throughout the 4th quarter of 2008, Merrill's monetary condition degraded at a worrying rate, with anticipated 4Q-2008 losses enlargement from $5.3 billion in November to over $12 billion by mid-December.
Investors of both business authorized the offer on December 5th, 2008, however quickly after, Lewis telephoned fed authorities and proclaimed he would conjure up the MAC stipulation to leave the offer unless fed authorities offered federal government monetary help. As he assembled his Board on December 22nd, 2008, Lewis had to make a choice. Or must he proclaim a MAC and leave the offer, possibly conjuring up the rage of the U.S. federal government.
PUBLICATION DATE: March 02, 2010 PRODUCT #: 910026-HCB-ENG
This is just an excerpt. This case is about ORGANIZATIONAL DEVELOPMENT
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