Merrill Lynch, a name synonymous with investment banking and wealth management, has been a pillar of the global financial industry for decades. It’s interesting to find out companies owned by Merrill Lynch as it owns a lot of brands and companies you might not have any idea of.
Known for its extensive portfolio of financial services, Merrill Lynch operates as a subsidiary of Bank of America, offering a diverse range of solutions for retail, institutional, and high-net-worth clients.
As a key player in the financial world, Merrill Lynch’s operations extend beyond its core brand, encompassing various subsidiaries and affiliate companies.
In this article, we will delve into the entities owned by Merrill Lynch and provide insights into its history, leadership, and operations.
Who Owns Merrill Lynch?
Merrill Lynch is owned by Bank of America, one of the largest financial institutions in the world.
In the wake of the 2008 financial crisis, Bank of America acquired Merrill Lynch in a landmark $50 billion deal, merging the firm’s investment banking and wealth management capabilities with its own extensive banking infrastructure.
This acquisition solidified Bank of America’s position as a global financial powerhouse, enabling it to offer a more comprehensive suite of services to its clients.
List of Companies Owned by Merrill Lynch
Merrill Lynch’s ownership extends to a range of subsidiaries and affiliates that enhance its capabilities in wealth management, trading, and investment banking. Here are the key companies owned by Merrill Lynch:
| Company/Brand | Stake (%) | Role/Acquisition Details |
|---|
| White, Weld & Co. | 100% | Acquired in 1978 to expand global investment banking services. |
| Herzog Heine Geduld, Inc. | 100% | Acquired in 2000 for $968 million to strengthen market-making capabilities. |
| EquiLend | Co-owner | Co-founded in 2001 as a securities lending platform with other financial institutions. |
| Fenner & Beane | 100% | Acquired in 1941 to expand brokerage operations. |
| Mercury Asset Management | 100% | Acquired in 1997 for £3.1 billion, later rebranded as Merrill Lynch Investment Managers. |
| First Franklin Financial Corp. | 100% | Acquired in 2006 for $1.3 billion, specialized in subprime mortgage lending. |
| Midland Walwyn Inc. | 100% | Acquired in 1998 for $850 million to enter the Canadian investment market; sold in 2001 to CIBC Wood Gundy. |
| TMS Entertainment | 7.54% | Acquired a minority stake in 2003 for investment purposes, no control over management. |
| A. G. Becker & Co. | 100% | Acquired in 1984 to enhance investment banking and advisory services. |
| Goodbody & Co. | 100% | Merged in 1970 to save its customers from loss; at the time, it was the largest merger between U.S. stockbroking firms. |
| First Republic Bank | 100% | Acquired in 2007 for $1.8 billion to expand private banking and wealth management services. |
White, Weld & Co.
White, Weld & Co. was a Boston-based investment bank established in 1895. Renowned for its asset management and investment banking services, the firm was historically managed by Boston Brahmins.
In 1978, Merrill Lynch acquired White, Weld & Co., integrating its services to bolster Merrill’s global financial offerings.
Merrill Lynch Wealth Management
As a core division, Merrill Lynch Wealth Management provides financial advisory services, portfolio management, and retirement planning solutions.
This entity caters to individual and institutional clients, leveraging advanced technology and a team of skilled advisors to deliver personalized financial strategies.
Herzog Heine Geduld, Inc.
Founded in 1926, Herzog Heine Geduld, Inc. became a leading market maker in NASDAQ and over-the-counter (OTC) securities. By 2000, it was the third-largest market maker in the NASDAQ market, boasting an 8% market share.
In the same year, Merrill Lynch acquired Herzog Heine Geduld for $968 million, significantly enhancing its market-making capabilities by expanding from trading 650 stocks to 10,000, including many smaller companies on NASDAQ’s OTC Bulletin Board and the Pink Sheets.
Mercury Asset Management
Founded in 1969, Mercury Asset Management was a leading UK-based investment management company. In 1997, Merrill Lynch acquired Mercury Asset Management for £3.1 billion, subsequently rebranding it as Merrill Lynch Investment Managers (MLIM).
This acquisition enhanced Merrill Lynch’s asset management capabilities and expanded its presence in the European market.
Merrill Edge
Merrill Edge is a digital platform designed for self-directed investors and those seeking guided investment solutions.
Offering an intuitive interface, research tools, and integration with Bank of America accounts, Merrill Edge is a popular choice for tech-savvy investors.
First Franklin Financial Corp.
First Franklin Financial Corp., established in 1981, specialized in subprime home mortgage lending. In December 2006, Merrill Lynch acquired First Franklin for $1.3 billion, aiming to create a pipeline of loans for packaging into mortgage-backed securities.
However, the subprime mortgage crisis led to significant challenges, and First Franklin halted loan originations in March 2008.
Merrill Lynch, Pierce, Fenner & Smith Incorporated
This subsidiary serves as the backbone of Merrill Lynch’s investment banking and brokerage services.
It provides expertise in equity and debt capital markets, M&A advisory, and trading solutions for institutional clients.
Midland Walwyn Inc.
In June 1998, Merrill Lynch expanded its Canadian investment business by acquiring Midland Walwyn Inc., at the time Canada’s largest independent brokerage.
This acquisition marked Merrill Lynch’s re-entry into the Canadian market, making Canada the seventh-largest market for personal investment. However, in December 2001, Merrill Lynch sold Midland Walwyn to CIBC Wood Gundy.
EquiLend
EquiLend is a securities lending platform launched in late 2001 by a consortium of leading financial institutions, including Merrill Lynch. The platform was designed to streamline and standardize the securities lending process, offering services such as trading, operations, and market data to its clients.
TMS Entertainment
In 2003, Merrill Lynch became the second-largest shareholder of TMS Entertainment, a renowned Japanese animation studio, by acquiring a 7.54% stake. This investment was made purely for investment purposes, with no intention of acquiring control over the firm’s management.
Merrill Lynch Life Agency Inc.
Focused on insurance products, Merrill Lynch Life Agency Inc. offers life insurance, annuities, and other risk management solutions to help clients secure their financial future.
Merrill Lynch International
This entity oversees Merrill Lynch’s operations outside the United States, ensuring seamless service delivery to global clients.
Its presence in major financial hubs enables the company to cater to diverse markets.
Fenner & Beane
Established in 1916, Fenner & Beane was a prominent U.S. brokerage firm. In 1941, Merrill Lynch acquired Fenner & Beane, a move that significantly bolstered its brokerage operations and expanded its national presence.
Merrill Lynch Professional Clearing Corp.
Specializing in clearing and settlement services, this subsidiary supports institutional trading activities, including prime brokerage and margin financing.
BlackRock (Historical Connection)
While not currently owned by Merrill Lynch, it is worth noting that Merrill Lynch played a significant role in the creation of BlackRock, one of the world’s largest asset managers.
Merrill Lynch’s early investment helped establish BlackRock as a financial behemoth, though it divested its stake in 2006.
When Was Merrill Lynch Founded?
Merrill Lynch was founded in 1914 by Charles E. Merrill and Edmund C. Lynch. Initially established as a small investment banking firm, it rapidly grew into a global financial institution, known for its innovative approach and commitment to client success.
The company’s rich history reflects its resilience and adaptability in the face of changing market dynamics.
Who Is the CEO of Merrill Lynch?
As of the latest updates, Eric Schimpf serves as the President of Merrill Lynch Wealth Management.
Under his leadership, the company has focused on enhancing client relationships, leveraging technology, and promoting a culture of financial wellness.
Where Is the Headquarters of Merrill Lynch?
Merrill Lynch’s headquarters is located in New York City, a global hub for finance and commerce.
Situated at the iconic Bank of America Tower, the firm operates in close proximity to other major financial institutions and regulatory bodies.
What Is the Annual Revenue of Merrill Lynch?
Merrill Lynch contributes significantly to Bank of America’s overall revenue. As of October 2024, the annual revenue of Merrill Lynch is around $5.8 billion. The combined Bank of America’s Global Wealth and Investment Management division, which includes Merrill Lynch, reported revenues exceeding $20 billion in recent years. This underscores Merrill Lynch’s pivotal role in the parent company’s financial success.
How Many Employees Does Merrill Lynch Have?
Merrill Lynch boasts a workforce of approximately 34,000 financial advisors, supported by thousands of additional employees across its operations.
This talented and diverse team is dedicated to delivering top-tier financial services to clients worldwide.
Final Thoughts
Merrill Lynch remains a cornerstone of the global financial industry, with a rich history, a diverse range of subsidiaries, and a strong parent company in Bank of America.
Through its subsidiaries and affiliates, Merrill Lynch continues to provide unparalleled services in wealth management, investment banking, and beyond.
Its enduring legacy and commitment to innovation ensure that it remains a trusted partner for individuals and institutions seeking financial success.
FAQs
What Does the Merrill Lynch Company Do?
Merrill Lynch specializes in wealth management, investment banking, and financial advisory services. It offers personalized financial solutions, including portfolio management, retirement planning, and trading services, to individual and institutional clients worldwide.
Is Merrill Lynch a Big Company?
Yes, Merrill Lynch is a significant entity within the global financial industry. As a subsidiary of Bank of America, it plays a crucial role in wealth management and investment banking, serving millions of clients and managing billions in assets.
Who Owns Merrill Lynch?
Merrill Lynch is owned by Bank of America, which acquired the company in 2008 as part of a strategic move to expand its financial services offerings and global reach.
Did Merrill Lynch go bankrupt?
No, Merrill Lynch did not go bankrupt. During the 2008 financial crisis, Merrill Lynch faced significant financial difficulties and was acquired by Bank of America to avoid collapse. The acquisition was completed on January 1, 2009.
Who owns Merrill Lynch today?
Merrill Lynch is owned by Bank of America. After the 2008 financial crisis, Bank of America acquired Merrill Lynch, and it now operates as part of Bank of America’s wealth management and investment banking divisions.
Who bought Merrill Lynch?
Bank of America acquired Merrill Lynch in 2008 during the financial crisis. The acquisition was valued at approximately $50 billion and was completed in early 2009.
Who is the founder of Merrill Lynch?
Merrill Lynch was founded by Charles E. Merrill and Edmund C. Lynch in 1914. The company started as a small Wall Street firm and grew into one of the largest financial services companies in the world.
Who owns Merrill Lynch now?
As of today, Merrill Lynch is owned by Bank of America. It operates as a subsidiary under the Bank of America Corporation, primarily focusing on wealth management and investment services.
Does Merrill Lynch still exist?
Yes, Merrill Lynch still exists but not as an independent company. It operates as part of Bank of America, primarily under the name “Merrill Lynch Wealth Management” and “Merrill Lynch Pierce Fenner & Smith” for brokerage services.
What are some notable mergers and acquisitions involving Merrill Lynch?
Merrill Lynch has been involved in several mergers and acquisitions over the years. The most notable include:
- 2008 Acquisition by Bank of America: Merrill Lynch was acquired by Bank of America during the financial crisis to prevent its collapse.
- 1997 Acquisition of Mercury Asset Management: Merrill Lynch expanded its asset management capabilities by acquiring this UK-based firm.
- 2003 Acquisition of Midland Walwyn: This acquisition helped Merrill Lynch expand its presence in Canada.
What happened to Merrill Lynch during the 2008 financial crisis?
During the 2008 financial crisis, Merrill Lynch faced severe financial instability due to its exposure to subprime mortgages. To avoid bankruptcy, it agreed to be acquired by Bank of America in a deal worth approximately $50 billion. The acquisition was completed in early 2009.
Is Merrill Lynch part of Bank of America?
Yes, Merrill Lynch is part of Bank of America. After the 2008 acquisition, Merrill Lynch was integrated into Bank of America’s operations, primarily serving as its wealth management and investment banking division.
What services does Merrill Lynch offer today?
Merrill Lynch, under Bank of America, offers a range of financial services, including wealth management, investment advisory, brokerage services, retirement planning, and banking solutions. It primarily caters to individual investors, businesses, and institutions.