Another big news shocked Wall Street today after the biggest commercial bank announced that it will become the largest investment banker. Commercial Bank Bank of America has agreed to buy investment bank Merrill Lynch for 50 billion dollars. Transaction was mediator of the U.S. government.

The deal will be done via an exchange of shares by 0.8595 shares of Bank of America will be exchanged for one share on Merrill. Stock price is based on the closing price on Friday, which was 29 dollars per security of Merrill Lynch.

Earlier this month has conjugate that Bank of America e one of the potential buyers of problem Lehman Brothers. According to analysts cited by Bloomberg, however, deal with Merrill is much more profitable for the largest commercial bank in the U.S..
So far losses of Merrill, related to the mortgage crisis in the U.S., accounted over 19 billion dollars. Despite the great figure but according to some analysts the acquisition of Merrill team of 16 690 people who manage a portfolio of 1.6 trln. dollars, is the most valuable in the transaction for Bank of America.

According to a report of Citigroup fair value of Merrill was significantly higher - over 40 dollars a share. The report says that only businesses with Asset Management investment bank is worth 16 dollars for the shares.

The huge scale in its deal could scored a dose of confidence and calm markets in the U.S. financial system, some analysts believe.

Despite the deal, however, currently in U.S. state index futures traded in red. Most victim S & P 500, which so far has fallen by 3.19 percent and futures are traded on 1 218.40. Futures on the Dow Jones and Nasdaq fall by around 2.5 percent.

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