Thursday, September 13, 2007

Merrill Lynch - Organization Structure - 2007


1. Focusing on the customer: An interview with the head of Merrill Lynch’s operations and IT

In financial institutions, operations and technology units work together to carry on the processes of the business, as well as to develop new services. Financial-management leader Merrill Lynch has combined the two units and put them under one leader to integrate their activities more fully.
The head of Merrill’s Global Infrastructure Services, Diane L. Schueneman, says that this integrated structure empowers the company to meet the customer’s needs more effectively.
To transform her organization, Schueneman believes in transforming its people—through educational opportunities and an environment that supports collaboration, experimentation, and the creation of new value-generating services.

Merrill Lynch & Co Inc MER (NYSE)

2. Merrill Lynch & Co., Inc. (Merrill Lynch) is a holding company that provides investment, financing, insurance and related services to individuals and institutions on a global basis through its broker, dealer, banking, insurance and other financial services subsidiaries. As an investment bank, the Company is a global trader and underwriter of securities and derivatives across a range of asset classes. Merrill Lynch also serves as an advisor to corporations, governments, institutions and individuals worldwide. On September 29, 2006, Merrill Lynch completed the merger of its Merrill Lynch Investment Managers (MLIM) business with BlackRock, Inc. (BlackRock) (the BlackRock merger). The Company owns a 45% voting interest and approximately half of the economic interest of BlackRock. Prior to the BlackRock merger, Merrill Lynch operated in three segments: Global Markets and Investment Banking (GMI), Global Private Client (GPC) and MLIM. Effective with the BlackRock merger, MLIM ceased to exist as a separate business segment. A new business segment, Global Wealth Management (GWM), was created, consisting of GPC and Global Investment Management (GIM). As a result, the Company operates in two segments: GWM and GMI. The Company conducts its business from various locations worldwide with offices in 37 countries. Merrill Lynch's major geographic regions of operations include the United States, Europe, the Middle East and Africa (EMEA), the Pacific Rim, Canada and Latin America.

On December 30, 2006, the Company acquired the First Franklin mortgage origination franchise and related servicing platform from National City Corporation. During the fiscal year ended December 29, 2006 (fiscal 2006), Merrill Lynch acquired Petrie Parkman & Co., a niche investment bank focused on the North American oil and gas industry. In fiscal 2006, the Company also acquired Tat Yatirim Bankasi, a bank in Turkey that will serve as a base for its activities in Turkey. In January 2007, Merrill Lynch and CIR SpA acquired a 47.4% stake each in Oakwood Financial Investments, an international company specializing in high-growth retail financial services. On February 23, 2007, the Company and COFIDE concluded an agreement, wherein the Company held a 39% in Societa Finanza Attiva SpA, which was renamed Euvis SpA.

The Company provides a variety of research services on a global basis through its Global Securities Research & Economics Group. These services are an integral component of the product offering to GMI and GWM clients. This group distributes research focusing on four main areas globally: fundamental equity research, fixed-income and equity-linked research, economics and foreign exchange research, and investment strategy research. Merrill Lynch's analysts and other professionals cover approximately 3,000 companies.

Global Markets and Investment Banking

GMI provides trading, capital markets services, and investment banking services to issuer and investor clients worldwide. GMI's Global Markets division facilitates client transactions, and is a market maker in securities, derivatives, currencies, commodities and other financial instruments to satisfy client needs. In addition, GMI also engages in certain trading activities. Global Markets also provides clients with financing, securities clearing, settlement and custody services, and also engages in principal and private equity investing. GMI's Investment Banking division provides a range of securities origination and advisory services for issuer clients, including underwriting and placement of public and private equity, debt and related securities, as well as lending and other financing activities for clients globally. These services also include advising clients on issues, valuation, mergers, acquisitions and restructurings. In fiscal 2006, GMI generated 57% of the Company's net revenues.

Global Markets revenues are reported in two categories based on asset class: Fixed Income, Currencies and Commodities (FICC), and Equity Markets. FICC consists of various groups, including Global Credit, which is responsible on a global basis for credit trading of money market instruments, investment grade debt, credit derivatives, structured credit products, syndicated loans, high-yield debt, distressed and emerging markets debt, as well as collateralized mortgage obligations, asset-backed securities trading and pass-through mortgage obligations trading; Global Commercial Real Estate, which is responsible on a global basis for secured commercial real estate lending, securitizations related to these transactions, as well as principal and equity investments in real estate; Global Structured Finance & Investments, which is responsible for asset-based lending, residential real estate lending, servicing and securitizations related to these transactions, asset-liability management for the investment securities portfolios of Merrill Lynch's bank subsidiaries, as well as principal and equity investments in other secured assets; Global Rates, which is responsible on a global basis for sales and trading activities for interest rate derivatives, United States government and other federal agency securities, obligations of other sovereigns, municipal securities, repurchase and resale financing and debt financial futures and options; Global Foreign Exchange, which is responsible on a global basis for sales and trading activities for currency, exotic options, forwards and local currency trading, and Global Commodities, which is responsible for energy and weather risk management, as well as marketing and trading of natural gas, power, oil, coal, metals, emissions, crude, refined products, natural gas liquids and commodity indices on a global basis.

Equity Markets includes Global Cash Equity Trading, which is responsible for the Company's full-service cash equity trading and portfolio and electronic trading capabilities on a global basis; Global Equity-Linked, which is responsible for trading activities in equity-linked derivatives, including exchange-traded options, convertible securities, financial futures and structured products on a global basis; Global Markets Financing and Services, which is responsible for equity financing and services, including prime brokerage, stock lending, money manager services and clearing, settlement and custody functions; Strategic Risk, which is responsible for risk trading that encompasses both qualitative and quantitative strategies across multiple asset classes on a global basis, and Global Private Equity, which executes private equity investments and manages these assets primarily for its own account and for that of certain investment partnerships, including employee partnerships. Investment Banking includes Country/Sector Coverage, which is responsible for all origination and advisory activities, across countries and sectors, on behalf of issuer clients; Corporate Finance, which is responsible for structured product capabilities, financial product development and commodities origination; Equity Capital Markets, which is responsible for all capital related activities for issuer clients generated in the equity markets, including convertible securities and equity derivative products; Debt Capital Markets, which is responsible for all capital related activities for issuer clients generated in the high-grade debt markets, including derivative products, liability management, private placements, money markets and structured transactions; Leveraged Finance, which is responsible for all financing activities for non-investment grade issuer clients, including high-yield bonds and syndicated loans; Mergers and Acquisitions, which is responsible for advising corporate clients regarding alternatives, divestitures, mergers, acquisition and restructuring activities, and Executive Client Coverage, which includes senior client relationship managers who focus on relationships with key clients.

Global Wealth Management

GWM, the Company's full-service retail wealth management segment, provides brokerage, investment advisory and financial planning services, offering a range of both proprietary and third-party wealth management products and services globally to individuals, small- to mid-size businesses, and employee benefit plans. GPC provides a range of wealth management products and services to assist clients in managing all aspects of their financial profile through the Total Merrill platform. GPC's offerings include commission and fee-based investment accounts; banking, cash management and credit services, including consumer and small business lending and Visa cards; trust and generational planning; retirement services, and insurance products. GPC serviced individuals and small- and middle-market corporations and institutions through approximately 15,880 financial advisors (FAs) in approximately 680 offices worldwide as of December 29, 2006. GIM includes Merrill Lynch's interests in creating and managing wealth management products, including alternative investment products for clients, for which revenues were previously included within GPC. GIM also includes the Company's share of revenues from its ownership positions in other investment management companies, including BlackRock. In fiscal 2006, GWM generated 37% of the Company's net revenues.

Merrill Lynch provides brokerage and advisory financial services in the United States to GPC clients principally through its FA network. Outside the United States, the Company provides brokerage and investment services and related products through a network of offices located in 26 countries. Merrill Lynch also offers banking and trust services, as well as investment management services, to its clients in many countries. GPC offers a range of traditional commission-based investment accounts, a variety of asset-priced brokerage and investment advisory services, and self-directed online accounts.

Individual clients access GPC brokerage and advisory services through the Cash Management Account (CMA), a product that combines investment and cash management transactions, as well as Visa cards, check writing and automated teller machine (ATM) access. As of December 29, 2006, there were approximately 2.3 million CMA accounts. Small- and medium-sized businesses obtain a range of securities account and cash management services through the Working Capital Management Account (WCMA account) and related services. The WCMA account combines business checking, investment and electronic funds transfer services into one account for participating business clients. As of December 29, 2006, there were approximately 115,000 WCMA accounts.

GPC provides electronic brokerage services through Merrill Lynch Direct, an Internet-based brokerage service for United States clients preferring a self-directed approach to investing. Merrill Lynch Direct offers trading of equities, mutual funds and select fixed-income securities, access to its own research as well as other research, and a variety of online investing tools.

GPC clients place deposits in the Company's banking entities, which are used for lending and investment activities. GPC also has a number of different business lines, including residential mortgage financing, small and mid-size business lending, and securities-based lending. GPC also sells life insurance and annuity products, and provides personal trust, employee benefit trust and custodial services for its clients. These activities are conducted through Merrill Lynch's various bank, trust and insurance subsidiaries.

The Merrill Lynch Retirement Group is responsible for the retirement assets of approximately 6.3 million individuals. This group provides a variety of investment and custodial services to individuals in the United States through individual retirement accounts (IRAs) or through one of approximately 35,000 workplace-based retirement programs serviced by the group. The Company also provides investment, administration, communications and consulting services to corporations and their employees for their retirement programs. These programs include equity award and executive services, 401(k), pension, profit-sharing and non-qualified deferred compensation plans, as well as other retirement benefit plans. In addition, it offers Merrill Lynch Advice Access, an investment advisory service for individuals in retirement plans that provides plan participants with the option of obtaining advice through their local FA, an advisor at the financial advisory center or through its Benefits Online Website.

GIM creates and manages alternative investment products for clients. Through its alternative investments business, GIM creates and manages an array of alternative investment options for clients. Merrill Lynch's alternative investments business offers a range of investment options, including offering high-net-worth clients access to a range of hedge fund strategies. BlackRock is an investment management firm with approximately $1.1 trillion in assets under management as of December 29, 2006. BlackRock manages assets on behalf of institutions and individuals worldwide through a variety of equity, fixed income, cash management and alternative investment products.

Merrill Lynch Investment Managers

MLIM, the Company's asset management segment prior to the BlackRock merger, offered a range of investment management capabilities to retail and institutional investors through proprietary and third-party distribution channels globally. Asset management capabilities included equity, fixed income, money market, index, enhanced index and alternative investments, which were offered through vehicles, such as mutual funds, privately managed accounts, and retail and institutional separate accounts. In fiscal 2006, MLIM generated 6% of Merrill Lynch's net revenues.


3. Officers and Directors - 14/9/2007

Name Age Officer Since Current Position Details Rank
O'Neal, E. Stanley 55 1997 Chairman of the Board, Chief Executive Officer, Chief Operating Officer Trade Activity 1
Fakahany, Ahmass L. 48 2002 Co-President Trade Activity 2
Fleming, Gregory J. 44 2003 Co-President Trade Activity 3
Berkery, Rosemary T. 53 2001 Vice Chairman of the Board, General Counsel Trade Activity 4
Edwards, Jeffrey N. 45 2005 Chief Financial Officer, Senior Vice President Trade Activity 5
Hayward, Christopher 41 2007 Finance Director, Principal Accounting Officer Trade Activity 6
McCann, Robert J. 48 2003 Executive Vice President, Vice Chairman and President- Global Private Client Trade Activity 7
Tosi, Laurence A. -- 2007 Chief Operating Officer - Global Markets and Investment Banking segment Trade Activity 8
Peters, Aulana L. 65 1994 Director Trade Activity 9
Prueher, Joseph W. 64 2001 Director Trade Activity 10
Cribiore, Alberto 61 2003 Director Trade Activity 11
Finnegan, John D. 58 2004 Director Trade Activity 12
Reese, Ann N. 54 2004 Director Trade Activity 13
Rossoti, Charles O. 66 2004 Director Trade Activity 14
Codina, Armando M. 60 2005 Director Trade Activity 15
Colbert, Virgis W. 67 2006 Director Trade Activity 16
Jonas, Judith M. 58 2006 Director Trade Activity 17
Christ, Carol T. 63 2007 Director Trade Activity 18

5. People news: 25 May 2007
Senior management shake-out at Merrill Lynch
Gregory Fleming and Ahmass Fakahany, the two newly appointed co-presidents of Merrill Lynch, have begun their tenures by shaking up senior management beneath them.

In an internal memo, the pair announced they were introducing a “flat management structure”. The overhaul sees business heads in global markets and investment banking, as well as global wealth management, sitting on two executive committees and reporting directly to Fleming and Fakahany.

Andrea Orcel has been appointed head of global origination. He was previously head of origination for Europe, the Middle East and Africa (Emea), based in London. Orcel continues to be head of global financial institutions and co-president of Emea with London-based colleague Osman Semerci.

Chief operating officer of global markets and investment banking, John Sievwright, becomes chief operating officer of Merrill Lynch International. He remains in New York and reports to Fleming and Fakahany.

Laurence Tosi, former finance director of the bank, is now chief operating officer for global markets and investment banking. He continues to be based in New York and reports to Fleming and Fakahany. Filling his old role is Chris Hayward, who was previously treasurer of Merrill Lynch. He also continues to be based in New York and reports to Fleming and Fakahany, as well as the firm’s chief financial officer, Jeff Edwards.

Eric Heaton replaces Hayward as treasurer, while retaining his role as head of strategy and business development. However he is no longer co-head of investment banking for the Americas within the bank’s financial institutions group. He remains based in New York, reporting to Fleming, Fakahany and Edwards.

In global wealth management, Navtej Nandra becomes chief operating officer and head of strategy for the firm’s global private client unit. He was formerly chief operating officer of global investment banking with responsibility for origination. He continues to be based in New York and reports to Fleming and Fakahany, as well as global private client head Bob McCann. His predecessor as global private client chief operating officer, Colbert Narcisse, is moving across to global markets and investment banking. According to the firm, he will shortly take a senior position that has yet to be announced.

The moves follow Fleming and Fakahany's appointment as the first co-presidents of Merrill Lynch, and news that New York-based co-head of global markets and investment banking, Dow Kim, is leaving at the end of the year to set up a fund management firm.


6. Profile: Merrill Lynch Global Private equity group

The buyout unit of a global financial services leader, the Merrill Lynch Global Private Equity group participates in a diverse array of deals, often investing alongside the buyouts of its investment banking clients.

MLGPE eschews venture capital, choosing instead to take large stakes in established businesses and market leaders.

MLGPE maintains staff in New York, London, São Paulo, Bangkok, Tokyo, Sydney and Hong Kong; its portfolio reflects the global reach of its professionals.


Seeking a pattern to MLGPE's holdings? Good luck -- the banking giant's private equity arm keeps its portfolio diverse in both industry and geography. Household names include rental-car leader Hertz; HCA Inc., the United States' top provider of healthcare services; and Debenhams, the second-largest department store chain in the United Kingdom.

Notable business-to-business backbones include Advantage Sales & Marketing, which services more than 1,200 manufacturers, suppliers, and producers of consumer packaged goods; France's Rexel, the global leader in electrical parts distribution; and Convermex, Mexico's top maker of disposable plastic tableware which counts among its clients consumer superheavyweights like Coca-Cola, McDonald's and Wal-Mart.

Also among MLGPE's overseas holdings: Brazilian hospital supplier Cremer S.A.; Italy's N&W Global Vending S.p.A., globally the top manufacturer of vending machines, and Chinese pharmaceutical leader Tongjitang Chinese Medicines Company.

Contact Information

Merrill Lynch
4 World Financial Center, 250 Vesey Street
New York, NY 10080
Phone: 800-637-7455
Fax: 212-449-9418

No comments: