History of Merrill Lynch & Co. in Timeline

Merrill Lynch & Co. was a prominent American investment bank, operating independently from 1914 until its acquisition by Bank of America in January 2009. After the acquisition, it was integrated into BofA Securities. Merrill Lynch was a publicly traded company and a major player in the financial industry for nearly a century.

January 6, 1914: Charles E. Merrill & Co. founded

On January 6, 1914, Charles E. Merrill established Charles E. Merrill & Co. at 7 Wall Street in New York City.

1914: Founding of Charles E. Merrill & Co.

In 1914, specifically on January 6, Charles E. Merrill opened Charles E. Merrill & Co. for business at 7 Wall Street in New York City, marking the beginning of what would become Merrill Lynch.

1915: Name changed to Merrill, Lynch & Co.

In 1915, Edmund C. Lynch joined Charles Merrill's firm, and the name was officially changed to Merrill, Lynch & Co.

1916: Winthrop H. Smith Joins the Firm

In 1916, Winthrop H. Smith became associated with the firm.

1921: Purchase of Pathé Exchange

In 1921, Merrill Lynch purchased Pathé Exchange, which later became RKO Pictures.

1926: Acquisition of controlling interest in Safeway Inc.

In 1926, Merrill Lynch acquired a controlling interest in Safeway Inc., transforming the small grocery store into the country's third largest grocery store chain by the early 1930s.

1930: Restructuring and spin-off of retail brokerage

In 1930, Merrill Lynch underwent a major restructuring led by Merrill, spinning off the company's retail brokerage business to E. A. Pierce & Co. to focus on investment banking. This involved transferring employees, including Lynch and Winthrop H. Smith, and Merrill receiving a minority interest in E.A. Pierce.

1938: E.A. Pierce Controls Largest Wire Network

By 1938, E.A. Pierce would control the largest wire network with a private network of over 23,000 miles of telegraph wires. These wires were typically used for orders.

1938: Discussions about a possible merger

In 1938, Following the death of Lynch in 1938, Smith began discussions with Merrill, who owned a minority interest in E.A. Pierce, about a possible merger of the two firms.

1938: Comma dropped from the Firm's Name

In 1938, the comma between Merrill and Lynch was dropped from the firm's name.

April 1, 1940: Merger with E. A. Pierce & Co. and Cassatt & Co.

On April 1, 1940, Merrill Lynch merged with E. A. Pierce & Co. and Cassatt & Co., a Philadelphia-based brokerage firm, becoming Merrill Lynch, E. A. Pierce, and Cassatt.

1940: Winthrop H. Smith Running the Company

In 1940, Winthrop H. Smith had been running the company since 1940.

1941: Merger with Fenner & Beane

In 1941, Merrill Lynch, E. A. Pierce and Cassatt merged with Fenner & Beane, a New Orleans–based investment bank and commodities company, and was renamed Merrill Lynch, Pierce, Fenner & Beane.

1941: Publication of annual fiscal report

In 1941, the company became the first on Wall Street to publish an annual fiscal report, enhancing transparency.

1952: Formation of Merrill Lynch & Co. as a holding company

In 1952, the company formed Merrill Lynch & Co. as a holding company and officially incorporated after nearly half a century as a partnership.

December 31, 1957: Article in the New York Times on the Firm's Name

On December 31, 1957, The New York Times referred to Merrill Lynch, Pierce, Fenner & Beane as "a sonorous bit of Americana".

March 1, 1958: Name change to Merrill Lynch, Pierce, Fenner & Smith and membership in NYSE

On March 1, 1958, the firm's name became "Merrill Lynch, Pierce, Fenner & Smith", and the company became a member of the New York Stock Exchange.

May 1963: Death of Christopher J. Devine

The death of Christopher J. Devine in May 1963, led to the subsequent acquisition of his firm, C. J. Devine & Co., by Merrill Lynch.

1964: Acquisition of C. J. Devine & Co.

In 1964, Merrill Lynch acquired C. J. Devine & Co., a leading dealer in US Government Securities, forming Merrill Lynch Government Securities Inc.

1990: Sale of retail investment business to CIBC Wood Gundy

In 1990, Merrill Lynch sold its retail investment business subsidiary in Canada to CIBC Wood Gundy.

December 1994: Orange County files for bankruptcy

In December 1994, Orange County, California, was forced to file for bankruptcy after former county treasurer Robert Citron lost $1.69 billion due to risky investments.

June 1998: Re-entry into Canadian Investment Business

In June 1998, Merrill Lynch re-entered the Canadian investment business with its purchase of Midland Walwyn Inc.

June 1998: Settlement with Orange County, California

In June 1998, Merrill Lynch settled with Orange County, California, for $400 million to resolve accusations of selling inappropriate and risky investments to Robert Citron. Merrill did not admit liability as part of the settlement.

1999: Enron and Merrill Lynch Nigerian Barge Transaction

In 1999, Enron and Merrill Lynch engaged in a transaction involving the sale of Nigerian energy barges. The charges alleged that the sale of an interest in Nigerian energy barges by an Enron entity to Merrill Lynch was a sham that allowed Enron to illegally book about $12 million in pretax profit, when in fact there was no real sale and no real profit.

December 2001: Sale of Midland Walwyn to CIBC Wood Gundy

In December 2001, Merrill Lynch sold Midland Walwyn to CIBC Wood Gundy, reversing its re-entry into the Canadian investment market.

2002: Merrill Lynch Settles for Improper Activities in Fort Lee Office

In 2002, Merrill Lynch settled for a $10 million civil penalty as a result of improper activities that took place out of the firm's Fort Lee, New Jersey office. Financial advisors placed 12,457 trades for a client in mutual funds and variable annuities, harming long-term investors.

2002: Merrill Lynch Settles Misleading Research Fine

In 2002, Merrill Lynch settled for a fine of $100 million for publishing misleading research. The agreement with the New York attorney general included increased research disclosure and decoupling research from investment banking.

2003: Henry Blodget Charged with Civil Securities Fraud

In 2003, Henry Blodget, a well known analyst at Merrill Lynch, was charged with civil securities fraud by the U.S. Securities and Exchange Commission. He settled without admitting or denying the allegations and was barred from the securities industry for life, paying a $2 million fine and $2 million disgorgement.

2003: Acquisition of Stake in TMS Entertainment

In 2003, Merrill Lynch became the second-largest shareholder of the Japanese animation studio TMS Entertainment, acquiring a 7.54 percent stake.

2003: Ricciardi Joins Merrill Lynch

Merrill Lynch's rise to be the leader of the CDO market began in 2003 when Christopher Ricciardi brought his CDO team from Credit Suisse First Boston to Merrill.

2004: Ranked No. 1 global underwriter of CDOs

In 2004, Merrill Lynch's Global Markets and Investing Group was ranked as the "No. 1 global underwriter of CDOs".

2004: Merrill Executives Convicted in Enron Investigation

In 2004, convictions of Merrill executives marked the only instance in the Enron investigation where the government criminally charged officials from banks and securities firms. The case revolved around a 1999 transaction involving Merrill, Enron, and the sale of electricity-producing barges off the coast of Nigeria.

2005: Promotion as No. 1 global underwriter of CDOs

In 2005, Merrill Lynch took out advertisements touting itself as the "No. 1 global underwriter of CDOs in 2004".

December 2006: Purchase of First Franklin Financial Corp.

In December 2006, Merrill Lynch purchased First Franklin Financial Corp., one of the largest subprime lenders in the country, to provide a supply of mortgages for CDOs.

June 26, 2007: EEOC Lawsuit Against Merrill Lynch

On June 26, 2007, the U.S. Equal Employment Opportunity Commission (EEOC) brought suit against Merrill Lynch, alleging the firm discriminated against Dr. Majid Borumand because of his Iranian nationality and Islamic religion.

July 2007: Significant losses over one year

In the one year between July 2007 and July 2008, Merrill Lynch lost $19.2 billion, or $52 million daily, and the company's stock price declined significantly.

July 20, 2007: Merrill Lynch Ordered to Pay $1.6 Million in Discrimination Case

On July 20, 2007, 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. This prompted reactions from the National Iranian-American council and the American-Arab Anti-Discrimination Committee.

September 2007: Merrill Lynch Stock Price Peak

In September 2007, Merrill Lynch's stock price reached a level from which the September 14, 2008 sale price of $29 per share represented a 61% discount.

November 2007: Write-down of losses and removal of CEO

In November 2007, Merrill Lynch announced it would write-down $8.4 billion in losses associated with the subprime mortgage crisis, and E. Stanley O'Neal was removed as its chief executive.

December 2007: Appointment of John Thain as CEO and Management Changes

In December 2007, John Thain was named the new CEO of Merrill Lynch. During his first days he made changes in the top management, bringing in former New York Stock Exchange (NYSE) colleagues. Also that month, the firm announced it would sell its commercial finance business to General Electric, and would sell off major shares of its own stock to Temasek Holdings.

2007: Collapse in value of CDOs

By the end of 2007, the value of Merrill Lynch's CDOs was collapsing, resulting in billions of dollars in losses for the company.

2007: Merrill Lynch Recognized for Disability Inclusion

In 2007, Merrill Lynch was named the second-best company in the US for people with disabilities by Diversity Magazine.

May 2008: Merrill Lynch Named Top Company for Diverse College Graduates

In May 2008, Merrill Lynch was named the No.1 US company for "Diverse College Graduates" by Diversity Edge magazine, edging out Microsoft for the top spot.

June 5, 2008: Merrill Lynch Creates WAMENA Professional Network

As of June 5, 2008, Merrill Lynch created the West Asian, Middle Eastern and North African (WAMENA) Professional Network to support and provide additional resources for employees of diverse backgrounds.

June 2008: Merrill Lynch Named Top Company for LGBT Employees

In its June 2008 issue, Diversity Inc. named Merrill Lynch one of the top 10 companies for lesbian, gay, bisexual, and transgender employees, and the seventh-best top company in the US for diversity overall.

July 2008: $4.9 billion fourth quarter losses

In July 2008, John Thain announced $4.9 billion fourth quarter losses for Merrill Lynch from defaults and bad investments in the ongoing mortgage crisis.

August 13, 2008: New Jersey Appeals Court Ruling Against Merrill Lynch

On August 13, 2008, the New Jersey appeals court rendered a ruling against Merrill Lynch in a discrimination lawsuit filed by a gay employee.

August 2008: Threat of lawsuit by New York Attorney General

In August 2008, Andrew Cuomo, New York Attorney General, threatened to sue Merrill Lynch over its misrepresentation of the risk on mortgage-backed securities.

August 22, 2008: Agreement to buy back auction-rate securities

On August 22, 2008, CEO John Thain announced an agreement with the Massachusetts Secretary of the Commonwealth to buy back all auction-rate securities from customers with less than $100 million in deposits, beginning in October 2008 and expanding in January 2009.

September 5, 2008: Downgrade by Goldman Sachs

On September 5, 2008, Goldman Sachs downgraded Merrill Lynch's stock to "conviction sell" and warned of further losses at the company.

September 8, 2008: Lehman Brothers Liquidity Pressures

On September 8, 2008, Lehman Brothers faced severe liquidity pressures, raising concerns about its survival and the potential spread of financial instability to other investment banks.

September 14, 2008: Agreement to be acquired by Bank of America

On September 14, 2008, at the height of the 2008 financial crisis, Merrill Lynch agreed to be acquired by Bank of America. This occurred the same weekend that Lehman Brothers was allowed to fail.

September 2008: Reported losses on mortgage-backed securities

In September 2008, Bloomberg reported that Merrill Lynch had lost $51.8 billion on mortgage-backed securities as part of the subprime mortgage crisis.

October 2008: Start of auction-rate securities buyback

In October 2008, Merrill Lynch began buying back auction-rate securities from customers with less than $100 million in deposits.

2008: Merrill Lynch Bonus Payments Amidst Losses

In 2008, Merrill Lynch arranged for payment of billions in bonuses for 2008 performance in what appeared to be "special timing", despite reported losses of $27 billion. These bonuses totalled $3.6 billion, which was one-third of the money they received from the feds' TARP bailout.

2008: AIG Insurance Arrangements

In 2008, Merrill Lynch received billions of dollars from insurance arrangements with AIG, including $6.8 billion from funds provided by United States taxpayers to bail out AIG.

2008: Sale of CDOs to Lone Star Funds

In mid-2008, Merrill Lynch sold a group of CDOs, that had once been valued at $30.6 billion to Lone Star Funds for $1.7 billion in cash and a $5.1 billion loan.

January 2009: Acquisition by Bank of America

In January 2009, Merrill Lynch & Co. was acquired by Bank of America and rolled into BofA Securities, ending its independent existence.

January 2009: Expansion of auction-rate securities buyback

In January 2009, Merrill Lynch expanded its buyback program for auction-rate securities from customers.

January 2009: Completion of acquisition by Bank of America

In January 2009, the acquisition of Merrill Lynch by Bank of America was completed.

March 2009: Merrill Lynch's AIG Bailout Funds

In March 2009, reports surfaced that Merrill Lynch received billions of dollars in 2008 from insurance arrangements with AIG, including $6.8 billion from funds provided by United States taxpayers to bail out AIG.

April 2009: MBIA sues Merrill Lynch for fraud

In April 2009, bond insurance company MBIA sued Merrill Lynch for fraud and other violations related to credit default swap "insurance" contracts on Merrill's mortgage-based collateralized debt obligations.

2009: Rabobank Sues Merrill Lynch over CDO Norma

In 2009 Rabobank sued Merrill over a CDO named Norma, alleging that a hedge fund named Magnetar Capital had chosen assets to go into Norma, and allegedly bet against them, but that Merrill had not informed Rabobank of this fact.

2010: Justice Bernard Fried disallowed all but one of the charges

In 2010 Justice Bernard Fried disallowed all but one of the charges, the claim by MBIA that Merrill had committed breach of contract by promising the CDOs were worthy of an AAA rating when, it alleges, in reality they were not.

October 2013: Merger into Bank of America Corporation

In October 2013, Merrill Lynch & Co., Inc. was officially merged into Bank of America Corporation, fully integrating it into the larger financial institution.

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