Merrill says head of fixed income has left firm

NEW YORK (Reuters) - World's largest brokerage Merrill Lynch (MER.N: Quote, Profile, Research, Stock Buzz), which is expected to announce third-quarter losses in fixed income, said on Wednesday that Osman Semerci, global head of fixed income, currencies & commodities, has left the firm.

Semerci has been replaced by David Sobotka, who has been head of Merrill's global commodities business since 2004.

A Merrill spokeswoman confirmed that Semerci and another executive, Dale Lattanzio of the company's structured credit unit, have departed, and that Sobotka will replace Semerci.

She did not give a reason for the departures. A source close to Merrill Lynch who is familiar with the situation said Semerci was fired. Semerci and Lattanzio could not immediately be reached for comment.

Amid a global credit crunch, investors are increasingly concerned more banks might announce losses related to credit problems as they close their books on a tumultuous third quarter.

A Goldman Sachs analyst said last month that Merrill Lynch faces a $1.5 billion third-quarter loss on its fixed-income business, driven by $4 billion in asset write-downs connected to leveraged loans and mortgages.

"We are assuming a $1.5 billion total loss on the (fixed-income) business," Goldman Sachs analyst William Tanona said in a research note.

MELTDOWN

On September 14, Merrill Lynch warned that shaky credit markets forced it to reduce the value of securities linked to risky subprime mortgages and other products, a move that could hurt third-quarter profit.