Karl Zachar

Merrill's Moves Make It More Appealing Takeover Candidate

What would Goldman Sachs gain by buying Merrill? I think that is a crazy idea. Furthermore, JP Morgan just bought Bear Stearns. Will they really buy another broker?

The more interesting rumor is one posted on the NYT DealBook today stating that Goldman Sachs "might" be in the market to buy a bank if the price was right. Despite today's rally, we should continue to see weakness in the bank stocks so GS might get their chance. Now that would be risky and aggressive, but would make more sense than GS buying MER.

karlzachar.com

Merrill Lynch: What's Up With John Thain?

Don't forget that John Thain had to deal with the prickly floor traders at the NYSE. If Thain can deal with a bunch of floor traders, he can manage Merrill’s retail brokers. Thain is tough as nails and has something to prove.