Sep. 15--Bank of America Corp. chief executive Ken Lewis today said his $50 billion purchase of brokerage and investment bank Merrill Lynch & Co. Inc. creates an "unparalled" financial services company that can reach more retail and corporate customers, while weathering the nation's banking crisis.

In a conference call with investors, Lewis said Merrill's "crown jewel" was its force of stock brokers that can sell investments and now banking products to wealthy customers. He defended a purchase price that valued the company at about $29 per share, much more than Merrill's depressed closing price Friday of $17.05.

"It was such a strategic opportunity that we elected not to roll the dice and go ahead and do it at this time," Lewis said.

Over a weekend that saw Wall Street chieftains and U.S. officials scrambling to shore up the financial system, Bank of America reached an agreement to buy Merrill Sunday, only hours after officially dropping out of the race to buy battered Lehman Brothers.

While bulking up Bank of America in brokerage and investment banking, the takeover could present a challenging integration and exposure to Merrill's remaining troubled assets. Both Lewis and Merrill CEO John Thain, however, said the companies had minimal exposure to Lehman, the investment bank filing for bankruptcy protection after failing to find a buyer.

Bank of America said it expects to cut pre-tax expenses by $7 billion by 2012, about 10 percent of the combined company's cost base. The acquisition will contribute to Bank of America earnings in 2010.

That means another round of yet to be disclosed job cuts, even as Bank of America slashes 7,500 jobs in July's purchase of mortgage lender Countrywide Financial Corp. The bank said it also can reduce costs by getting better prices from vendors and by consolidating offices. In brokerage deals, firms typically try to hold on to revenue-producing brokers, while cutting back-office staff. Lewis said the bank would likely offer bonuses to keep brokers on board.

The sale, expected to close in the first quarter, has been approved by both boards. It needs approval of both companies' shareholders and of regulators. Three Merrill Lynch directors would join Bank of America's board.

The combined company would have the world's largest force of stock brokers, with more than 20,000 financial advisers with $2.5 trillion in client assets. Bank of America would also gain Merrill's 50 percent ownership of money manager BlackRock Inc., which has $2.5 trillion in assets under management.