By now, everyone knows that Bank of America is looking at buying Lehman Brothers. Back in October 2007 when Ken Lewis was quoted in the Wall Street Journal saying, “I never say never, but I’ve had all the fun I can stand in investment banking at the moment."So what changed? Some snarky bloggers on Cityfile.com offer this: What You'll Get With Your Lehman Brothers Purchase.
I know, of course, Lewis isn't in it for another stinkin' jet. So, why pick up Lehman Brothers now, when Merrill Lynch is still hanging out there? Will BofA buy Lehman now or wait for Merrill?
9/14 Update: No Deal Reached Yet to Decide Lehman's Fate. The Fed presiding over Wall Streeters and trying to cobble together a plan. Classic "Prisoner's Dilemma" scenario.
9/14 Update 5:10 PM: From the New York Times' Dealbook:
Bank of America is in advanced talks to buy Merrill Lynch for at least $38.25 billion in stock, people briefed on the negotiations said on Sunday, as a means to preserve that investment bank while Lehman Brothers looks likely to collapse.
The move suggests a desperate effort at triage on Wall Street, as Bank of America works to shore up the likely next victim of the credit crunch. A deal, valued at between $25 a share to $30 a share, could be announced as soon as Sunday night, these people said. Merrill shares closed at $17.05 on Friday.
It appears that BofA balked at Lehman Brothers deal and is now going for the whole enchilada -- Merrill Lynch.
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