Bob McCann’s fight to free himself from a non-compete contract with Bank of America is almost over.
The negotiations are still continuing and no formal settlement has been signed up yet. But we’re told by a source familiar with the negotiations that the bank has agreed in principal to release McCann to start working again.
In short, McCann fought the largest bank in America and he won.
McCann was the head of the brokerage business at Merrill Lynch when it was acquired by Bank of America. He left the bank shortly after the deal closed on December 31st. He has been arguing that the merger constituted a rightful cause for him to leave, freeing him of the non-compete requirement. He took Bank of America to court seeking a declaration that the non-compete no longer applies.
Two weeks ago the judge in the case ordered McCann and Bank of America to attempt to settle the case. Since then there was been relatively little news. Charlie Gasparino reported today that a settlement was close.
We expect that the settlement will be signed up shortly. McCann has been in negotiations with UBS to take over its troubled brokerage, which he would like to rename Paine Webber. The brokerage may actually be spun out of UBS, according to numerous media reports. Other reports say that McCann is being considered for the role of running the entire US division of UBS.