Virginia residents would be interested to know that one of the largest banks in America is seeking to merge one of its subsidiaries into the parent company, a move that most outsiders claim will be unnoticeable. The main bank believes that this effort will be helpful in simplifying its organization, as well as reducing costs of the company. This merge comes after the acquisitions the bank did on its subsidiary in midst of the nationwide financial crisis back in the late 2000s.
The merge is to be expected by the fourth quarter. A full merger, according to a spokesperson for the company, is said to assume the obligations and debts of the subsidiary bank in full. In regards to inducing simplicity within the company, the spokesperson also said the parent company would, in effect, have less legal entities and regulatory filings.
According to a close source for the bank, the merge would be relatively unnoticeable for customers. The subsidiary bank will continue to operate under its own identification and would not cease or separate itself from its customers. The company does not plan to let go of the brand in any way for the sake of retail brokerage. The parent company is also, at this time, involved in a separate subsidiary, which owes more than $5 billion in debt.
This debt is to be settled in a court of law, using qualified and professional attorneys. Lawyers are helpful in mergers and acquisitions cases, and may be helpful in settling on a specific amount that needs to be paid in order to protect the company. They may also be helpful in discovering areas that can be improved to cut costs in the business, thus reducing future debt.
Source: USA Today, "Merrill may merge fully into Bank of America", Kevin McCoy, August 16, 2013