Merrill Lynch Co-President to quit; Thain gets busy hiring new staff

Merrill Lynch & Co. said on Monday co-President Ahmass Fakahany will leave the company as the brokerage builds a new management team following a credit implosion that triggered US$12-billion in net losses in the second half of 2007.

Fakahany’s departure is effective February 1. No replacement was announced.

Before his promotion in May to co-president, Fakahany duties included responsibility for market risk management as Merrill’s build-up of risky collateralized debt obligations surged.

Exposure to the subprime-laden debt vehicles backfired. Soured CDO positions were mostly to blame for Merrill’s US$24-billion in write-downs last year and huge net losses.

Rest at Financial Times

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