Banc of America Securities
Encyclopedia
Banc of America Securities LLC (BAS), based in New York City, was an investment banking
subsidiary of Bank of America
. The firm competed in both the domestic and international equity and investment banking markets, and pursued a strategy pioneered by Citigroup
that combines corporate lending with investment banking advice and services. Banc of America Securities merged with Merrill Lynch
after that firm's acquisition in 2008.
Its strongest investment banking groups included high-yield debt
underwriting and Leveraged Finance, in addition to industry coverage groups such as Healthcare, Consumer & Retail, Global Industries, Media & Telecom, Financial Institutions, Real Estate and Gaming. BAS also did a significant amount of work for Financial Sponsors, or private equity firms, often financing leveraged transactions. On the product side, the firm employed M&A senior bankers throughout the industry coverage groups. BAS also had a stand-alone Mergers & Acquisitions Group, consisting of bankers that transact M&A deals across all industries, as well as a Transaction Development Group, which aimed to identify and market transaction opportunities.
The company was registered as a broker-dealer
with the United States Securities and Exchange Commission
(SEC)and was a member of the New York Stock Exchange
and the National Association of Securities Dealers. The use of "Banc" in the BAS's name was indicative of the fact that the company is not a bank, and its deposits and other holdings are not insured by the Federal Deposit Insurance Corporation
.
will lead the combined Bank of America
/Merrill Lynch
Global Corporate and Investment Banking enterprise. However on January 22, 2009 after the departure of John Thain
Brian Moynihan became president of Global Banking and Global Wealth and Investment Management.
, Charlotte, North Carolina
, Chicago, Illinois, San Francisco, California
, Tokyo
, Frankfurt
, London
, and Mumbai
. While its world headquarters were at the Bank of America Corporate Center
in Charlotte, the bulk of its investment banking operations were at the Bank of America Tower
, a $1 billion, 58-story skyscraper, at Bryant Park
in New York City that was completed in 2009. During 2008, BAS significantly downsized its international operations, eliminating a multitude of industry groups in Europe.
Investment banking
An investment bank is a financial institution that assists individuals, corporations and governments in raising capital by underwriting and/or acting as the client's agent in the issuance of securities...
subsidiary of Bank of America
Bank of America
Bank of America Corporation, an American multinational banking and financial services corporation, is the second largest bank holding company in the United States by assets, and the fourth largest bank in the U.S. by market capitalization. The bank is headquartered in Charlotte, North Carolina...
. The firm competed in both the domestic and international equity and investment banking markets, and pursued a strategy pioneered by Citigroup
Citigroup
Citigroup Inc. or Citi is an American multinational financial services corporation headquartered in Manhattan, New York City, New York, United States. Citigroup was formed from one of the world's largest mergers in history by combining the banking giant Citicorp and financial conglomerate...
that combines corporate lending with investment banking advice and services. Banc of America Securities merged with Merrill Lynch
Merrill Lynch
Merrill Lynch is the wealth management division of Bank of America. With over 15,000 financial advisors and $2.2 trillion in client assets it is the world's largest brokerage. Formerly known as Merrill Lynch & Co., Inc., prior to 2009 the firm was publicly owned and traded on the New York...
after that firm's acquisition in 2008.
Its strongest investment banking groups included high-yield debt
High-yield debt
In finance, a high-yield bond is a bond that is rated below investment grade...
underwriting and Leveraged Finance, in addition to industry coverage groups such as Healthcare, Consumer & Retail, Global Industries, Media & Telecom, Financial Institutions, Real Estate and Gaming. BAS also did a significant amount of work for Financial Sponsors, or private equity firms, often financing leveraged transactions. On the product side, the firm employed M&A senior bankers throughout the industry coverage groups. BAS also had a stand-alone Mergers & Acquisitions Group, consisting of bankers that transact M&A deals across all industries, as well as a Transaction Development Group, which aimed to identify and market transaction opportunities.
The company was registered as a broker-dealer
Broker-dealer
A broker-dealer is a term used in United States financial services regulations. It is a natural person, a company or other organization that trades securities for its own account or on behalf of its customers....
with the United States Securities and Exchange Commission
United States Securities and Exchange Commission
The U.S. Securities and Exchange Commission is a federal agency which holds primary responsibility for enforcing the federal securities laws and regulating the securities industry, the nation's stock and options exchanges, and other electronic securities markets in the United States...
(SEC)and was a member of the New York Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
and the National Association of Securities Dealers. The use of "Banc" in the BAS's name was indicative of the fact that the company is not a bank, and its deposits and other holdings are not insured by the Federal Deposit Insurance Corporation
Federal Deposit Insurance Corporation
The Federal Deposit Insurance Corporation is a United States government corporation created by the Glass–Steagall Act of 1933. It provides deposit insurance, which guarantees the safety of deposits in member banks, currently up to $250,000 per depositor per bank. , the FDIC insures deposits at...
.
Leadership
On October 3, 2008, Bank of America announced that John ThainJohn Thain
John Alexander Thain is an American businessman, investment banker, and currently chairman and CEO of the CIT Group.Thain was the last chairman and chief executive officer of Merrill Lynch before its merger with Bank of America...
will lead the combined Bank of America
Bank of America
Bank of America Corporation, an American multinational banking and financial services corporation, is the second largest bank holding company in the United States by assets, and the fourth largest bank in the U.S. by market capitalization. The bank is headquartered in Charlotte, North Carolina...
/Merrill Lynch
Merrill Lynch
Merrill Lynch is the wealth management division of Bank of America. With over 15,000 financial advisors and $2.2 trillion in client assets it is the world's largest brokerage. Formerly known as Merrill Lynch & Co., Inc., prior to 2009 the firm was publicly owned and traded on the New York...
Global Corporate and Investment Banking enterprise. However on January 22, 2009 after the departure of John Thain
John Thain
John Alexander Thain is an American businessman, investment banker, and currently chairman and CEO of the CIT Group.Thain was the last chairman and chief executive officer of Merrill Lynch before its merger with Bank of America...
Brian Moynihan became president of Global Banking and Global Wealth and Investment Management.
Offices
BAS operated offices across the world, with major offices in New York CityNew York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
, Charlotte, North Carolina
Charlotte, North Carolina
Charlotte is the largest city in the U.S. state of North Carolina and the seat of Mecklenburg County. In 2010, Charlotte's population according to the US Census Bureau was 731,424, making it the 17th largest city in the United States based on population. The Charlotte metropolitan area had a 2009...
, Chicago, Illinois, San Francisco, California
San Francisco, California
San Francisco , officially the City and County of San Francisco, is the financial, cultural, and transportation center of the San Francisco Bay Area, a region of 7.15 million people which includes San Jose and Oakland...
, Tokyo
Tokyo
, ; officially , is one of the 47 prefectures of Japan. Tokyo is the capital of Japan, the center of the Greater Tokyo Area, and the largest metropolitan area of Japan. It is the seat of the Japanese government and the Imperial Palace, and the home of the Japanese Imperial Family...
, Frankfurt
Frankfurt
Frankfurt am Main , commonly known simply as Frankfurt, is the largest city in the German state of Hesse and the fifth-largest city in Germany, with a 2010 population of 688,249. The urban area had an estimated population of 2,300,000 in 2010...
, London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
, and Mumbai
Mumbai
Mumbai , formerly known as Bombay in English, is the capital of the Indian state of Maharashtra. It is the most populous city in India, and the fourth most populous city in the world, with a total metropolitan area population of approximately 20.5 million...
. While its world headquarters were at the Bank of America Corporate Center
Bank of America Corporate Center
The Bank of America Corporate Center is an 871 ft skyscraper in Uptown Charlotte, North Carolina. When completed in 1992, it became and still is the tallest building in North Carolina as well as the tallest building between Philadelphia and Atlanta, Georgia; it is 60 stories high. It is the...
in Charlotte, the bulk of its investment banking operations were at the Bank of America Tower
Bank of America Tower, New York City
Bank of America Tower at One Bryant Park is a skyscraper in the Midtown district of Manhattan in New York City, in the United States. It is located on Sixth Avenue, between 42nd and 43rd Street, opposite Bryant Park....
, a $1 billion, 58-story skyscraper, at Bryant Park
Bryant Park
Bryant Park is a 9.603 acre privately managed public park located in the New York City borough of Manhattan. It is located between Fifth and Sixth Avenues and between 40th and 42nd Streets in Midtown Manhattan...
in New York City that was completed in 2009. During 2008, BAS significantly downsized its international operations, eliminating a multitude of industry groups in Europe.
External links
- Financial Statements
- Banc of America Securities Global Equities and Electronic Trading Services site
- Bank of America Corporation's website