Merrill Lynch CEO resignation could change move plans

The expected resignation of Merrill Lynch CEO Stan O’Neal could change the company’s reported plans to move its headquarters from Downtown to the site of Hotel Pennsylvania. The company’s board didn’t discuss the possible move at its recent meeting, when O’Neal was forced to explain an $8.4 billion write-down. In 2013, its lease at Brookfield‘s World Financial Center expires. If it does leave Lower Manhattan, the blow could be softened by a trend of rising rents and low vacancies there. Vornado wants to build Merrill Lynch a tower across from Penn Station. The firm’s need for more space would require Brookfield to enlarge 2 WFC, while developer Larry Silverstein would have to redesign the World Trade Center‘s Tower 3 to enlarge it.