Merrill shuffles execs after mortgage snafus

Stanley O'Neal has quickly wielded his knife. The firm is expected to post some huge 3Q losses this month, and blame seems to have been already assigned. Osman Semerci, who headed fixed-income trading, and Dale Lattanzio, who ran structured credit products, have been pushed out, according to media reports. The Financial Times also notes that Dow Kim, former co-head of Merrill's markets and investment banking business, had left, as planned to start a hedge fund. But Merrill will no longer be investing in said fund. These sorts of moves are not surprising in the wake of disastrous quarters. O'Neal's approach contrasts with that of Charles Prince, who is awaiting a report before taking action. (See next item). We'll have to see how the bank fared, but some say the losses could reach up to $1.5 billion. Stay tuned.

For more:
- here's the Financial Times article