Bank of America Corp's $50 billion acquisition of Merrill Lynch & Co

Merrill Lynch is one of the world's leading financial management and advisory companies, providing financial advice and investment banking services

Multiple news sources are reporting that Bank of America has struck a $44 billion deal to buy Merrill Lynch, pending final legal documents. Apparently, the federal government was involved in brokering the deal to prevent a collapse of Merrill Lynch. Meanwhile, a plan to rescue Lehman Brothers has apparently failed and Lehman is expected to be liquidated. AIG appears to be next, as it is facing a liquidity crisis. Along with the collapse / bail out of Bear Stearns earlier in the year, Wall Street appears to be in serious trouble.

Bank of America is the nation’s largest retail bank and had the opportunity to buy Lehman as well, but passed for the chance to buy Merrill Lynch, the nation’s largest retail brokerage. With the largest retail bank and retail brokerage, Bank of America may now be the country’s most important financial institution. Lehman Brothers and AIG are two of the largest and oldest financial institutions in America. If one or both collapse, there would be reverberations throughout the world.

"Acquiring one of the premier wealth management, capital markets, and advisory companies is a great opportunity for our shareholders,” Bank of America Chairman and Chief Executive Officer Ken Lewis said. “Together, our companies are more valuable because of the synergies in our businesses.”

"Merrill Lynch is a great global franchise and I look forward to working with Ken Lewis and our senior management teams to create what will be the leading financial institution in the world with the combination of these two firms," said John Thain, chairman and CEO of Merrill Lynch.