BofA said set to profit from expiring Bloomberg deal

Brian Moynihan With Batphone

This July, if you see former Big Apple mayor Mike Bloomberg sweating, it may not because of the usual summer heat.

The New York Post reports that a secretive slice of the $4.4bn deal that sold Merrill Lynch’s 20% stake in the former mayor’s Bloomberg LP back to the data firm in 2008 — that bars the brokerage firm from cutting back on the number of $21,000-a-year Bloomberg terminals — is set to expire in about six months, The newspaper has learned.

The end of the eight-year lock-up opens the door for Bank of America, which bought Merrill several months after the Bloomberg deal was announced, to start cutting back on its $420-million-a-year Bloomberg terminal rental tab.

Like other banks, BofA is under pressure to cut costs in a time of volatile markets.

The bank, led by CEO Brian Moynihan, is weighing a move to pare back the number of Bloomberg terminals by as much as 5,000, or 25$, sources said.

To access the complete New York Post article hit the link below:

Bank of America set to cash on expiring Bloomberg terminal deal

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