Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Another Head Rolls at Merrill Lynch

Co-president will step down in wake of huge subprime losses

By Sam Gale Rosen, Newser Staff

Posted Jan 28, 2008 3:55 PM CST

(Newser) – Merrill Lynch co-president Ahmass Fakahany will step down after subprime mortgages led to a $9.8 billion fourth-quarter loss, the firm said today. Fakahany is at least the third exec from Stan O'Neal's team to leave since John Thain took over as CEO, reports Bloomberg. Thain replaced O'Neal in October following almost-as-horrifying third-quarter losses.

The decision hasn't been made public, but Merrill is expected to announce Fakahany's departure soon. When he was promoted in May 2007, O'Neal called him one of the "strongest leaders of the organization." He had joined Merrill in 1987. The security firm's other co-president, Greg Fleming, will remain under Thain.

A Merrill Lynch office is seen in New York in this Oct. 24, 2007 file photo. Ahmass Fakahany, Co-President of Merrill Lynch & Co. is stepping down in response to record losses on subprime mortgages and... (Associated Press)

People arrive at the Merrill Lynch building on a rainy morning in New York in this Nov. 15, 2007 file photo.Ahmass Fakahany, Co-President of Merrill Lynch & Co. is stepping down in response to record... (Associated Press)

Ahmass Fakahany, Co-President of Merrill Lynch & Co. is stepping down in response to record losses on subprime mortgages and bonds acquired while he oversaw risk management. (merrilllynch.com)

« Prev« Prev | Next »Next » Slideshow

To report an error on this story, notify our editors.

More Newser Stories

This Woman's Job: to Make You Like BofA

Anne Finucane juggles politicians, shareholders, and customers

(NEWSER) - Anne Finucane has one of the hardest jobs in the country: to make us like Bank of America. The high-powered image-maker juggles politicians, interest groups, and her own boss—BofA President Brian Moynihan—in an ongoing effort to resuscitate the bank's flailing reputation and lowly stock price since the 2008 economic collapse. Correct that: Finucane is so powerful, Moynihan has to meet with her. “We all report to Anne,” he once quipped. More»

Perry Gave Huge Tax Grants to Subprime Lenders

Countrywide, WaMu got $35M as they upped risky loans

(NEWSER) - Rick Perry handed mortgage lenders millions to draw them to Texas—right when their risky lending practices surged. The governor gave Countrywide $20 million and Washington Mutual $15 million in what he called an exemplary job-creation move; in effect, that $35 million subsidized dangerous subprime lending, an AP analysis of data and records finds. And when some began to fear the impending mortgage crisis, Perry's rep shrugged off their concerns as “slightly alarmist.” More»

SEC Poised to Charge Fannie, Freddie Execs

But regulatory agency disagrees, and nothing has yet been filed

(NEWSER) - The SEC is making moves toward charging current and former Fannie Mae and Freddie Mac executives, sources tell the Washington Post , but the Federal Housing Finance Agency disagrees with the move. The SEC has sent notices to at least four senior executives over the past eight weeks warning them they may face civil charges, although nothing has been formally filed and the SEC could still change its mind. The executives would be charged with violations related to the housing market collapse, including a failure to provide investors with necessary information about the companies' mortgage holdings. More»

WaMu 'Poisoned' Financial System: Senate Report

Senate panel says lender knowingly built 'mortgage time bomb'

(NEWSER) - Washington Mutual made subprime loans it knew would go bad, then packaged them into risky securities, creating a “mortgage time bomb,” according to a Senate report. The permanent investigations subcommittee is grilling former WaMu execs this morning. The report also says the bank packaged and sold loans it knew were tainted by fraud, without disclosing the fraud to buyers, the Los Angeles Times reports. WaMu even pushed some buyers who qualified for prime loans into subprime ones. More»

Axed Merrill Boss Tapped to Head CIT

Spendthrift John Thain gets hands on new troubled company

(NEWSER) - The CEO who spent $1.2 million renovating his office and arranged $3.6 billion in executive bonuses while his company, Merrill Lynch, was circling the toilet bowl, has just been named CEO of CIT Group. John Thain rises to the top of a public company again a year after he was jettisoned by Bank of America after it acquired Merrill Lynch. Thain inherits a firm struggling since former Merrill colleague and ex-CEO Jeffrey Peek immersed the company in subprime mortage lending before its bankruptcy. More»

NEWS FROM OUR PARTNERS

What is Newser?

Face it: there's too much news. At Newser, we choose the most thought-provoking and entertaining stories from hundreds of US and international sources and reduce them to a headline, picture, and two paragraphs. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »

Partnering with: Slate

View Newser on the mobile website

Another Head Rolls at Merrill Lynch

Co-president will step down in wake of huge subprime losses

OTHER STORIES ON OUR RADAR

subprime mortgages • Merrill Lynch • John Thain • Stan O'Neal • subprime crisis

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

This Woman's Job: to Make You Like BofA

Anne Finucane juggles politicians, shareholders, and customers

Perry Gave Huge Tax Grants to Subprime Lenders

Countrywide, WaMu got $35M as they upped risky loans

SEC Poised to Charge Fannie, Freddie Execs

But regulatory agency disagrees, and nothing has yet been filed

WaMu 'Poisoned' Financial System: Senate Report

Senate panel says lender knowingly built 'mortgage time bomb'

Axed Merrill Boss Tapped to Head CIT

Spendthrift John Thain gets hands on new troubled company

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?

Another Head Rolls at Merrill Lynch

Co-president will step down in wake of huge subprime losses

Bookmark & Share

OTHER STORIES ON OUR RADAR

subprime mortgages • Merrill Lynch • John Thain • Stan O'Neal • subprime crisis

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

This Woman's Job: to Make You Like BofA

Anne Finucane juggles politicians, shareholders, and customers

Perry Gave Huge Tax Grants to Subprime Lenders

Countrywide, WaMu got $35M as they upped risky loans

SEC Poised to Charge Fannie, Freddie Execs

But regulatory agency disagrees, and nothing has yet been filed

WaMu 'Poisoned' Financial System: Senate Report

Senate panel says lender knowingly built 'mortgage time bomb'

Axed Merrill Boss Tapped to Head CIT

Spendthrift John Thain gets hands on new troubled company

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?