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Merrill Lynch Denies It Has Raised Prime Brokerage Margins
Earlier we disclosed market rumors that BofA/ML has raised PB margins. Bank of America has hit our tip box providing the following denial that PB margins have increased. We are happy that BofA/ML has seen it as sufficiently important to its business to refute rumors posted on a blog.
In response to earlier chatter this morning, please post the company statement below. Please confirm receipt and call with any questions.
Thanks.“Bank of America Merrill Lynch has not raised its prime brokerage margins in any product including equity, credit, rates, FX, etc.”
xxxxxxxxxxx
Bank of America
Senior Vice President, Media Relations
Global Banking & Markets
The take home here is that of all bailed out banks, Zero Hedge is still only banned at Goldman Sachs.
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"I did not have sex with that woman."
define 'that'
Wow , Tyler, they are watching .. keep up good work.
Hey ML traders do us a favor and let us know if we are going directly to 11,000 again or if you are going to make it look credible? Since you are the only ones left in the world with the leverage to move the markets and mark up prices it would be useful information. Cheers
Most likely what went on is people started calling MER trading desk and it became a sufficiently large % of call volume to be noted so they actually bothered to investigate where it's coming from and contacted ZH to stuff it.
First they ignore you. Then they laugh at you. Then they fight you. Then you win.
And where does this action fall on that scale?
Like a PBR, it is always a good time for a Gandhi quote...
It became "attack you" when "dickweed" Kneale shouted "dickweed bloggers"...
Talk about transference and projection...
"First they ignore you. Then they laugh at you. Then they fight you. Then you win."
You need to add - "then you get shot through the chest three times with .380ACP slugs."
I think it's pretty important to our young readers to be apprised of that last part, as it really mitigates the whole thrill-of-victory thing.
Anyway..Ponzi on. Useless regulation passed and so is the meltup.
You didn't run the whole thing. I have the rest here:
"Bank of America Merrill Lynch has not raised its prime brokerage margins in any product including equity, credit, rates, FX, etc. But since you brought it up we'll think about it."
Now now cougar, don't put words in BAC's mouth.
Instead, take that mouse (since you're a cougar it might actually be an antelope) you're playing with right now and shove it up their a.......... :>)
they are clearly crapping their pants at any bad pr. Good to see that this site at least is keeping them on their toes. CNBC certainly arent.
Can someone please explain - what is a Prime Brokerage Margin? I am just a newbie and am looking to understand - any examples would help ! Thanks !
Hi Steve,
Didn't they explain those while you were broadcasting from the floor at RBS...?
Gold!
You must have me confused with someone else. Anyhow, some of the stuff on this blog is pretty technical and I don't understand it - so I thought to pose a question and start somewhere to begin learning this stuff.
on Fri, 05/21/2010 - 10:34
#365766
Can someone please explain - what is a Prime Brokerage Margin? I am just a newbie and am looking to understand - any examples would help ! Thanks !
laawaaris,
Try this link... http://lmgtfy.com/?q=Prime+Brokerage+Margin ... Glad to help!
Sincerely, JW
PBs offer mid to back office services to institutional clients, such as trade execution and securities lending. They allow you to lever up, meaning you can borrow funds while posting either cash as collateral or the underlying securities themselves. In times of market volatility when Prime Brokers expose themselves to greater risk, they demand more in collateral in exhange for allowing you to buy on the margin.
In the aftermath of Lehman, prime brokers began demanding additional collateral from their hedge fund clients when the market value of the securities pledged plunged, which in many instances led to forced liquididation across multiple asset classes.
P.S. don't ask questions like that around here. This site is not exactly noob-friendly.
Agree with the not noob-friendly part, but you just gave a great example of how answers here ARE answered.
You have to get through a few comments of bullshit, but in the end helpful info typically arises.
Oh almost forgot..... 'buy gold!!1'
They changed their mind with the dow up 200 off the lows.
Buzz Kill!!!!!
Shoot. I guess I'll go put the popcorn up.
Keep making 'em sweat Tyler dude!
...a blog that didn't exist, what, 1.5 years ago? new world order...
LEAVE KEN LEWIS ALONE.
LEAVE.KEN.LEWIS.........ALONE.
Tell those Assholes they still owe me 50 dollars. Oh they get me SO DAMN MAD!
i like the attention that ZH is getting.
how about posting a rumour like, 'Ben Bernake DEAD' ...and see if he ( or his office) responds.
good way to check who is reading.
That might actually explain some things.
'Ben Bernanke DEAD'
If you play Obummer's last speech backwards, you can hear the words "Ben is dead".
AND
In that WSJ picture of Bernank-ster, Timmay G., Lloyd B. God and Jamie Dimon crossing Broad Street...
Bennie was barefoot!!! Ben IS dead! Ben IS DEAD!
It's not really suprising, the odds are there are multiple members of major brokerages that read here.
BOAML,
Hahahahahahaha! What a bunch of bottom feeding morts. Ken should be thrown under the bus, not us. Stupid motherfucker. You only reply to the New York Times, not a small time blog like this. Sheeesh.
You see, Goldman Sachs has obligations to all of its clients. What is important to recognize is that our clients look to us to perform different roles in each of our businesses. The question put to some of our executives at last month’s Senate Subcommittee hearing was whether, as a market maker, we had a fiduciary duty to our clients. The answer to that question is no, market makers do not have a fiduciary duty to their clients.
Market makers are primarily engaged in the business of assisting clients in executing their desired transactions and are responsible for providing fair prices. This business is client-driven and serves an intermediary function, and in this role we are not giving our clients advice -- a fact our clients understand.
http://www2.goldmansachs.com/our-firm/on-the-issues/viewpoint/viewpoint-articles/5-18-clients.html
I always thought Lloyd would have a husband.
Credibility verified. Readers can be comfortable that what they read here is valid due to the scrutiny of important entities and the reporting of corrections and sources in a real time mode. You do not get that in say the NY Times, Wash Post, NBC, CBS, ABC and etc. Fiction may become fact in many information media. Zero Hedge is definitely on song and quick. That is what crosses the finish line in first place. A winner.
I will never do business with ML again, ever. I sent the wife down to close the BA (didn’t that start as Bank of Italy?) account about 3 weeks back and they convinced her that we need to keep the minimum funds there. So, as a customer of BofA, I commend MY bank for keeping you rascals honest. THIS is branding of the best sort. --Cheer for our side, and cheers for the day.
Amadeo Pietro Giannini (May 6, 1870 – June 3, 1949), born in San Jose, California, was the Italian American founder of Bank of America.
Giannini opened the Bank of Italy in a former San Francisco saloon on October 17, 1904.Giannini and his bank helped nurture the motion picture and wine industries in California
He loaned Walt Disney the funds to produce Snow White,
Upon Giannini's death in 1949, his son Mario Giannini, who had been afflicted with polio in his youth, took over leadership of the Bank,
Mario died at the age of 52. only son, george giannini was a broke di*k, though. running from creditors. lost dynasty, too bad. great stories of history.
ken lewis is fraud. his second home in aspen, 20 million, protested his increased property taxes. but was rejected. these banksters now a days are just crap.