Bank of America acquires Merrill Lynch

CHARLOTTE, N.C., Sept. 15 (UPI) -- U.S. retail banking giant Bank of America says it acquired ailing Wall Street financial firm Merrill Lynch in a $50 billion stock deal.

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

The acquisition is a case of a Wall Street high-flyer rescued by a firm that stuck to its roots, The Washington Post reported.

It said Merrill was facing financial weakness because it was one of the largest producers and sellers of the complex mortgage instruments at the heart of the U.S. credit meltdown while Bank of America largely had avoided Wall Street and concentrated on its profitable consumer banking operations.

Bank of America was in a position to rescue Merrill Lynch because it has continued to serve consumers in retail banking, giving it the cash to go shopping for an investment bank in a move that continues its long tradition of opportunistic acquisitions, the Post said.

Merrill's weakened position became clear during weekend negotiations between U.S. officials and Wall Street leaders.