What cultural issues arose in the Bank of America acquisition of Merrill Lynch and what strategy might address these problems?
When Bank of America (BofA) acquired Merrill Lynch in the fall of 2008, BofA CEO Ken Lewis thought he would gain a strong investment bank and a global network of financial advisors. Lewis underestimated the financial and cultural issues of combining the two firms, and, amidst growing concer, John Thain, CEO of Merrill Lynch was forced out in early 2009. In August of that year, Sallie Krawcheck was hired as head of Merrill’s global wealth and investment management. What did Krawcheck need to do to address the cultural issues brought on by the merger?
Case ID: 150403
This case is used in core curriculum