Why did Merrill Lynch stock go up when it was bought our by BOA but WaMu stock is falling with news of the JPM Chase buyout?

First, because Merrill did not have near the exposure to bad paper & had already taken steps to clean up their portfolio. They sold most of theirs at .22 on the dollar. Merrill was a victim of the short sellers, not of their own malfeasances.

Second, because Merrill has the premier retail brokerage on the market worth a gazillion all by itself.

Third, Because of their Stake in Blackrock, also worth a gazillion

Fourth, Global footprint with money coming in from all corners of the earth.

Fifth, Because Bank of America is the 800 lb Gorilla in Commercial Banking & could afford to absorb .8695 shares of BAC stock for every share of Merrill, without diluting their own earnings as the merger will be almost immediately acculturative to the BAC culture & contributory to earnings.

Sixth, because BAC is CEO has really, really big balls. l heard he needs a separate limo just to tote them.

l could give u 10 more, but these r the main reasons.

JPM is buying wamu from the fdic

The quick and easy is answer is.

WaMu was closed by the U.S. and put in receivership under the FDIC. JP Morgan then went to the FDIC and bought the assets of WaMu.

WaMu was already gone before the deal was done. Shares of the stock have zero value.

Had JP Morgan bought it yesterday, then the stock would have shot up on the news. No one wanted to buy it yesterday though.

Sorry.