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August 30, 2008 8:16:31 AM CDT

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Merrill Hauls in $6.6B Lifeline

Posted Jan 15, 08 6:05 AM CST in Business 

(Newser) – Merrill Lynch has reached into the deep pockets of foreign investors once again, pulling in a $6.6-billion lifeline today from a consortium of investors that include Japan’s Mizuho Financial Group and the Kuwait Investment Authority, the Wall Street Journal reports. In December, Merrill received a $5-billion cash infusion from a fund run by the government of Singapore.

Strengthening Merrill’s bottom line is key for CEO John Thain, hired Dec. 1 as subprime mortgage losses led to $8.4 billion in writedowns and the biggest loss in Merrill’s history. Merrill’s stock plunged 42% in 2007. Other Wall Street firms have sold billion-dollar stakes to foreign governments as they’ve attempted to recapitalize, including Citigroup, Morgan Stanley, Bear Stearns, and UBS.

Sources Wall Street Journal, Bloomberg

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A man checks his PDA outside the headquarters of Merrill Lynch & Co., Wednesday, Nov. 14, 2007, in New York.   (Associated Press)
A man enters Bear Stearns headquarters, Wednesday, Jan. 9, 2008 in New York. Bear Stearns Cos. Chief Executive James "Jimmy" Cayne said Tuesday that he's stepping down, not long after Merrill Lynch &...   (Associated Press)
Merrill Lynch CEO John Thain.   (Associated Press)
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