During a special shareholders meeting at company headquarters in New York, Merrill shareholders approved the sale of the company, bringing to an end the independence of an investment bank founded in 1914. Bank of America shareholders approved the deal later in the day. The purchase combines Bank of America, the largest U.S. bank by deposits, with the world's largest brokerage, linking Bank of America's huge customer base with Merrill's investment-banking services.

The move transforms the bank into a business befitting its name. A strong investment bank has been the only missing piece for Bank of America, which has struggled to build one from within. A series of bad bets in the investment banking unit over the past year have sunk companywide profits. Shares of Bank of America gained 90 cents, or 6.3 percent, to close at $15.24 on Friday, while Merrill Lynch shares jumped $1.13, or 9.5 percent, to $13.04.

nation

Bailout czar: Plan will yield returns

Taxpayers will get money back from the government program providing up to $250 billion in capital to banks around the country, a Treasury Department official said Friday. Neel Kashkari, the director of the Treasury's Office of Financial Stability, which oversees a $700 billion financial rescue fund, said the government is investing in "very high-quality institutions of all sizes."

The Treasury Department has received preferred stock and warrants to buy additional shares in return for the $150 billion it has invested so far in 52 banks, including Bank of America Corp., Citigroup Inc. and JPMorgan Chase & Co. Inc.

An Associated Press analysis shows that the warrants to purchase about 1.2 billion additional shares in those banks have so far lost about one-third of their value. Kashkari said in remarks to the Mortgage Bankers Association that the Treasury is working on ways to determine the effectiveness of the capital injections in enabling banks to lend more money.

Famed auction houses feel pinch

Sotheby's Inc. has approved a restructuring plan that will lead to salary reductions and layoffs because of poorer-than-expected earnings.

It was unclear how many people would lose their jobs. The art and antiques auction house said Friday that the plan would affect its North American operations, which employs 605 people.

Its rival Christie's also said Friday that it was reviewing its strategic plan because of the global financial crisis and its sales results for the fall.

FedEx settles case over drivers

FedEx Corp.