Merrill silent on job cut rumors
NEW YORK (Reuters) - Merrill Lynch & Co Inc MER.Non Thursday declined comment on a television report of "rumors" about a 15 percent job cut at the fixed income department of the world's largest brokerage.
Cable news channel CNBC's Charlie Gasparino reported the rumors. Merrill Lynch, which is expected to announce third-quarter losses in fixed income, is "not denying fixed income job cuts could happen," according to CNBC.
A Merrill spokeswoman told Reuters that the company doesn't comment on market rumors or speculation.
Merrill said on Wednesday that Osman Semerci, global head of fixed income, currencies and commodities, had left the firm.
Semerci and another executive, Dale Lattanzio of the company's structured credit unit, have departed, a spokeswoman confirmed on Wednesday without giving a reason for the departures.
Last month, Goldman Sachs analyst William Tanona estimated that Merrill would write down $4 billion of assets connected to leveraged loans and mortgages, possibly leading to a $1.5 billion third-quarter loss in its fixed income business.
Tighter credit conditions for mortgage lending operations due to the subprime meltdown have led many U.S. banks and financial services companies with banking operations to cut tens of thousands of jobs.
Bear Stearns Cos Inc BSC.N said on Wednesday it was cutting 310 jobs in its mortgage origination business. In August, it said it cut 240 subprime lending jobs.
Morgan Stanley (MS.N), Credit Suisse Group (CSGN.VX), Citigroup (C.N), Lehman Brothers Holdings Inc LEH.N and several others have also announced job cuts this year.
Shares of Merrill Lynch were down 1.7 percent, or $1.27 at $74.73 in midday trading on the New York Stock Exchange.
(Reporting by Anupreeta Das)
