BoA Merrill sees low chance of double-dip

The global economy has a 25% chance of seriously worsening again, but it would take a major event to cause a double-dip recession, Bank of America's investment banking chief told investors on Wednesday morning.

"We have a 25% chance of a double-dip recession," Thomas Montag, Bank of America Merrill Lynch's president of global banking and markets, said during a presentation.

But another double-dip would only result from "another outsize negative shock" to the economy, he said.

Montag joined Merrill Lynch in 2008 after 22 years at Goldman Sachs Group Inc. He addressed investors and executives on Wednesday at the beginning of Bank of America Merrill Lynch's annual Australia Investment Conference in New York.

Bank of America shares were up less than 1% at USD 13.33 in morning trading.