Merrill Lynch Quotes

She had worked her way up the ladder at Merrill Lynch, and then, shortly after Robert and I moved back to New York, she admitted to him that she hated the culture of finance. She told him she had to leave. He was disappointed that she hadn’t been happy with what had made him happy; that was obvious. But he was never disappointed in her.

Merrill Lynch lost $40 billion or so of its own money in 2008, and it wants to manage yours?

That was Eisman’s logic: the logic of Wall Street’s pecking order. Goldman Sachs was the big kid who ran the games in this neighborhood. Merrill Lynch was the little fat kid assigned the least pleasant roles, just happy to be a part of things.

In my Confessions, I told how I started by making a list of the clients I most wanted – General Foods, Lever Brothers, Bristol Myers, Campbell Soup Company and Shell. It took time, but in due course I got them all, plus American Express, Sears Roebuck, IBM, Morgan Guaranty, Merrill Lynch and a few others, including

That was Eisman’s logic: the logic of Wall Street’s pecking order. Goldman Sachs was the big kid who ran the games in this neighborhood. Merrill Lynch was the little fat kid assigned the least pleasant roles, just happy to be a part of things. The game, as Eisman saw it, was crack the whip. He assumed Merrill Lynch had taken its assigned place at the end of the chain. On

By early 2005 all the big Wall Street investment banks were deep into the subprime game. Bear Stearns, Merrill Lynch, Goldman Sachs, and Morgan Stanley all had what they termed “shelves” for their subprime wares, with strange names like HEAT and SAIL and GSAMP, that made it a bit more difficult for the general audience to see that these subprime bonds were being underwritten by Wall Street’s biggest names.

To the untrained eye, the Wall Street people who rode from the Connecticut suburbs to Grand Central were an undifferentiated mass, but within that mass Danny noted many small and important distinctions. If they were on their BlackBerrys, they were probably hedge fund guys, checking their profits and losses in the Asian markets. If they slept on the train they were probably sell-side people—brokers, who had no skin in the game. Anyone carrying a briefcase or a bag was probably not employed on the sell side, as the only reason you’d carry a bag was to haul around brokerage research, and the brokers didn’t read their own reports—at least not in their spare time. Anyone carrying a copy of the New York Times was probably a lawyer or a back-office person or someone who worked in the financial markets without actually being in the markets. Their clothes told you a lot, too. The guys who ran money dressed as if they were going to a Yankees game. Their financial performance was supposed to be all that mattered about them, and so it caused suspicion if they dressed too well. If you saw a buy-side guy in a suit, it usually meant that he was in trouble, or scheduled to meet with someone who had given him money, or both. Beyond that, it was hard to tell much about a buy-side person from what he was wearing. The sell side, on the other hand, might as well have been wearing their business cards: The guy in the blazer and khakis was a broker at a second-tier firm; the guy in the three-thousand-dollar suit and the hair just so was an investment banker at J.P. Morgan or someplace like that. Danny could guess where people worked by where they sat on the train. The Goldman Sachs, Deutsche Bank, and Merrill Lynch people, who were headed downtown, edged to the front—though when Danny thought about it, few Goldman people actually rode the train anymore. They all had private cars. Hedge fund guys such as himself worked uptown and so exited Grand Central to the north, where taxis appeared haphazardly and out of nowhere to meet them, like farm trout rising to corn kernels. The Lehman and Bear Stearns people used to head for the same exit as he did, but they were done. One reason why, on September 18, 2008, there weren’t nearly as many people on the northeast corner of Forty-seventh Street and Madison Avenue at 6:40 in the morning as there had been on September 18, 2007.

Who is going to influence whom in the new association? Warren may have entered the ocean in California, but I am sitting down in Virginia with Ben Graham’s beginner’s book and “How to Read a Financial Report” by someone called Merrill, Lynch, Pierce, Fenner and Smith. I am told I have to finish Ben Graham very soon because Warren is unwilling to pay the small fine involved in having the book out of the Omaha public library too long.

We're all equal before a wave. —Laird Hamilton, professional surfer In 2005, I was working as an equity analyst at Merrill Lynch. When one afternoon I told a close friend that I was going to leave Wall Street, she was dumbfounded. "Are you sure you know what you're doing?" she asked me. This was her polite, euphemistic way of wondering if I'd lost my mind. My job was to issue buy or sell recommendations on corporate stocks—and I was at the top of my game. I had just returned from Mexico City for an investor day at America Movíl, now the fourth largest wireless operator in the world. As I sat in the audience with hundreds of others, Carlos Slim, the controlling shareholder and one of the world's richest men, quoted my research, referring to me as "La Whitney." I had large financial institutions like Fidelity Investments asking for my financial models, and when I upgraded or downgraded a stock, the stock price would frequently move several percentage points.

What is a “pyramid?” I grew up in real estate my entire life. My father built one of the largest real estate brokerage companies on the East Coast in the 1970s, before selling it to Merrill Lynch. When my brother and I graduated from college, we both joined him in building a new real estate company. I went into sales and into opening a few offices, while my older brother went into management of the company. In sales, I was able to create a six-figure income. I worked 60+ hours a week in such pursuit. My brother worked hard too, but not in the same fashion. He focused on opening offices and recruiting others to become agents to sell houses for him. My brother never listed and sold a single house in his career, yet he out-earned me 10-to-1. He made millions because he earned a cut of every commission from all the houses his 1,000+ agents sold. He worked smarter, while I worked harder. I guess he was at the top of the “pyramid.” Is this legal? Should he be allowed to earn more than any of the agents who worked so hard selling homes? I imagine everyone will agree that being a real estate broker is totally legal. Those who are smart, willing to take the financial risk of overhead, and up for the challenge of recruiting good agents, are the ones who get to live a life benefitting from leveraged Income. So how is Network Marketing any different? I submit to you that I found it to be a step better. One day, a friend shared with me how he was earning the same income I was, but that he was doing so from home without the overhead, employees, insurance, stress, and being subject to market conditions. He was doing so in a network marketing business. At first I refuted him by denouncements that he was in a pyramid scheme. He asked me to explain why. I shared that he was earning money off the backs of others he recruited into his downline, not from his own efforts. He replied, “Do you mean like your family earns money off the backs of the real estate agents in your company?” I froze, and anyone who knows me knows how quick-witted I normally am. Then he said, “Who is working smarter, you or your dad and brother?” Now I was mad. Not at him, but at myself. That was my light bulb moment. I had been closed-minded and it was costing me. That was the birth of my enlightenment, and I began to enter and study this network marketing profession. Let me explain why I found it to be a step better. My research led me to learn why this business model made so much sense for a company that wanted a cost-effective way to bring a product to market. Instead of spending millions in traditional media ad buys, which has a declining effectiveness, companies are opting to employ the network marketing model. In doing so, the company only incurs marketing cost if and when a sale is made. They get an army of word-of-mouth salespeople using the most effective way of influencing buying decisions, who only get paid for performance. No salaries, only commissions. But what is also employed is a high sense of motivation, wherein these salespeople can be building a business of their own and not just be salespeople. If they choose to recruit others and teach them how to sell the product or service, they can earn override income just like the broker in a real estate company does. So now they see life through a different lens, as a business owner waking up each day excited about the future they are building for themselves. They are not salespeople; they are business owners.

What he did to Merrill Lynch was absolutely criminal.

Merrill Lynch seemed almost as vulnerable as Lehman, and almost as deep in denial.

I’m a little uncomfortable talking about Merrill Lynch with John in the room.

if we think this is in the best interest of Merrill Lynch shareholders, we need to do it.

Merrill Lynch had been weighing on my mind.

On Monday, Lehman Brothers had filed for bankruptcy, and Merrill Lynch, having announced $55.2 billion in losses on subprime bond–backed CDOs, had sold itself to Bank of America. The U.S. stock market had fallen by more than it had since the first day of trading after the attack on the World Trade Center. On Tuesday the U.S. Federal Reserve announced that it had lent $85 billion to the insurance company AIG, to pay off the losses on the subprime credit default swaps AIG had sold to Wall Street banks—the biggest of which was the $13.9 billion AIG owed to Goldman Sachs. When you added in the $8.4 billion in cash AIG had already forked over to Goldman in collateral, you saw that Goldman had transferred more than $20 billion in subprime mortgage bond risk into the insurance company, which was in one way or another being covered by the U.S. taxpayer.

It’s not in the interest of its competitors—Goldman Sachs, Morgan, Citigroup, JP Morgan—because if Lehman were to fail, then the pressure moves to Merrill Lynch and

The magnitude of the underfunding was astronomical. One study of just the 348 companies in the S&P 500 with defined benefit pension programs concluded that this underfunding amounted to between $184 and $323 billion (if non-pension benefits, such as health benefits, are included, the deficit is in the range of $458 to $638 billion). A Merrill Lynch study showed that companies with off-balance-sheet pension liabilities that exceed their total equity value include Campbell Soup, Maytag, Lucent, General Motors, Ford, Goodyear, Boeing, U.S. Steel, and Colgate Palmolive. While the accounting standards may have disguised the true size of the pension liabilities, they were in fact real liabilities, obligations of the corporations to their workers. They represented a potential source of bankruptcy for many of America’s most important companies.

A lot of things went wrong in the nineties, and the footprints of the banks can be found at the scene of one suspicious deed after another. Investment banks are supposed to provide information that leads to a better allocation of resources. Instead, all too often, they trafficked in distorted or inaccurate information, and participated in schemes that helped others distort the information they provided and enriched others at shareholders’ expense. The offenses of Enron and WorldCom—and of Citigroup and Merrill Lynch—put most acts of political crookedness to shame. The typical corrupt government official pockets a measly few thousand dollars—at most, a few million. The scale of theft achieved by the ransacking of Enron, WorldCom, and other corporations in the nineties was in the billions of dollars—greater than the GDP of some nations.