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More Painful 'House-Cleaning' Expected At Top Firm

The Wall Street Journal reports that Merrill Lynch may receive a $5bn cash infusion from Singapore's Temasek Holdings to shore up its capital. And The New York Post reports that David Trone, an analyst at Fox-Pitt Kelton, has said that the Wall Street firm could take an additional $8.4bn asset write-down hit in the fourth quarter, taking the 2007 asset write-down total to a massive $16.5bn. Credit Suisse analyst Susan Roth Kazke also said that she expected write-downs of up to $8bn and that 'we expect more senior management changes, some painful house-cleaning'.

More Write-Downs, Lay-Offs And Other Assorted Bad News

The Wall Street Journal reports that Canadian Imperial Bank of Commerce (CIBC) is now expected to take at least $2bn in write-downs for US subprime lending-related assets in the first quarter of 2008, after Standard & Poor's slashed the rating on one of the bank's counterparties, ACA Capital Holdings, by 12 notches to junk status.

The Latest Bonus News - Who's Hot, Who's Not


The Evening Standard reports that Morgan Stanley boss John Mack put back by a week the date his firm advised staff of their bonus numbers, after he learned what Goldman was paying its staff. The Wall Street firm is said to have told its staff Monday, after a 'last-minute scramble' to find more money for the bonus pot.

Top Firm Posts First Loss In History, Boss Takes No Bonus

Breaking News - Just one month after Morgan Stanley announced that it was writing-down $3.7bn in subprime and related assets, the firm has shocked the market by posting it first quarterly loss ever - after taking a massive additional write-down of $5.7bn. Morgan Stanley's fourth-quarter loss from continuing operations was $3.59bn.

Top Firm May Be Forced To Confirm Another Big Write-Down

CNBC reports that Merrill Lynch may be forced to come out and confirm another large US subprime lending-related write-down ahead of its full year earnings report, due in mid-January. The news site quotes unnnamed 'senior people at the firm' who say that senior executives are lobbying to get the bad news out in the open as soon as possible. Rumours are flying that Merrill will announce additional write-downs of up to $6bn, taking this year's total to a massive $14bn.