Why was Merrill hot and Lehman Not?

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JP Morgan and Lehman Brothers were part of the brotherhood of Bank of New York Federal Reserves. Now look at how that map has been rewritten:

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Geithner and Paulson allowed a marriage between Bear Stearns and JPMorgan with the Federal Reserves / Treasury providing the “underground” dowry.

“On decisions such as letting investment bank Lehman Brothers fail — though [Geithner] reportedly argued against it and was overruled by Paulson.”–Did Paulson say ‘Just Say No?”

On September 15, 2008 Bank of America bought Merrill Lynch. In November 2008 the Federal Reserve officially approved the marriage and the closing should finalize by year end.

On September 16, 2008 Lehman Brothers announced Bankruptcy.

On April 12, 2008 Lehman’s Fuld sent an email highlighting his dinner with Treasurer Paulson,
“we have great brand with Treasury.”–paulson doggybag

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From a marketing point of view:

Some marketers say that no matter how great your marketing is if you don’t have value then you are not going to succeed.

“The more market share an investment bank has, the less value it will deliver to clients.–Wharton and MIT

Some marketers say that Lehman gave nothing back to its customer whereas Merrill lived up to its tagline “Bullish on America”:

“Lehman Brothers chose to base their value on quarterly earnings and unchecked greed.”

“But from the self-definition of its brand value, Merrill has been and always will be “Bullish on America” and seem deeply rooted and strong. For its customers, those are reasons to remain confident in Merrill even as the quarterly statements were less than uplifting. Lehman Brothers is now simply irrelevant and that irrelevance had been coming for a long time.”–Stealing Share


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