Everyone has heard the big financial news of this week.  Bank of America acquired the troubled Merrill Lynch for $50 billion dollars. With this acquisition, Bank of America as upped it ranks as the biggest and largest everything… brokerage, mortgage lender, credit card issuer, bank. For just about every segment in the finance business… Bank of America is now the biggest.  They can easily be called thee monopoly of the finance industry.

Is this good…?  Is this bad…?

Ok I am going to tell you all my opinion… but first I must preface this with a disclaimer.

Neither am I nor have I ever been a big shot corporate executive.  And actually… I have no desire to be one.  It is too much responsibility and stress. And there too many people sneering down your back waiting for your next screw up.  Even with the millions in compensation, the loss of peace and sanity is not worth it to me.

Anyway, my opinion about Bank of America’s situation is entirely that of an outsider.  I am just the little man (woman) at the bottom of the totem pole who has something to say.

With the being said… I would like to present you all with a scenario. (I like to put things in simple terms so that I can get a better perspective.)

Ok for a moment… let’s pretend my name is America and I have a 10 year old Honda Accord.  It runs ok for now.  I have had a break down here and there.  But the mechanic had to put some patches on it and it is still rolling (for now).  And even though I get a clicking sound here and a clacking sound there, it gets me to where I need to go.

Now enters my friend… let call her Merrill.  Merrill has an Accord too.  Her car has also had some break downs here and there, the mechanic tries to put on a few patches… but the patches do not work.  As Merrill drives away from the mechanic shop, the wheels fall off and the engine drops to the ground.

So Merrill calls me (America) and says…

“Hi, my good ole’ buddy, America!  How are you today?…

Barely surviving yourself, huh? Yeah… good, good!…

Look America, I need a favor from you.  I am having problems with my little jalopy.  The wheels are gone, the engine is gone… all that is left is a shell of a car… and even that has dents and scratches…

No silly, I don’t need a ride.  What I need is for you to buy this jalopy from me for… umm… $50 billion dollars.

No, I am not kidding.  Seriously, $50 billion for a shell of a car is a bargain. You ought to jump on this deal while it is hot.  I’ve got three other people lined up waiting to buy it, but since you are my friend… I am making the first offer to you.”

My response… Yeah Merrill, I think I’mma have to pass on this one.  My little Accord is not in the best shape.  It’s getting me to where I need to go, but just barely.  I still hear a lot clicking and clacking coming from the transmission.  I need to get my car back to pristine running condition before I can take on your jalopy.  Thanks for thinking of me, but no thanks.  But, hey, maybe we can do lunch next week.

You see where I am going with this.

No PFA, I am not opposed to mergers and acquisitions.  It is usually a good thing because it creates opportunity and synergy.  But what opportunity does Bank of America have here?  The opportunity to add nearly $6 billion dollars of subprime assets to its portfolio.  Ain’t enough synergy in the world makes to make this a good deal.