Merrill Lynch Suffering After US Attacks

by Philip Morton, Investors Offshore.com

23 October 2001

Although Merrill Lynch suffered mercifully little in human terms from the September 11th terrorist attacks, according to CSFB analyst Van Hesser, it has been 'noticeably slow in ramping up after the attacks', and this is starting to impact on its enterprises both in the US and internationally.

Just one day after the US financial giant discussed possibilities for slimming down its international network, causing frantic speculation in the organisation's brokerage operations and domestic retail banks over who might be for the chop, Merrill announced that it would be offering a severance package to each of its 65,900 employees.

Although the package is voluntary, combined with the recent statement made by the organisation that it wanted to make sure that it was 'sized properly for the market opportunity' has made a lot of people across its international network very nervous.

Speaking to the Independent on Sunday, one Merrill employee glumly observed: 'A year ago, we were talking about how many zeroes there would be on our bonuses. Now the main topic of conversation is how long we'll be able to last out on our severance packages.' Meanwhile, in the joint private banking venture between Merrill and HSBC, speculation has given way to resignation, as clear signals were given two weeks ago that jobs would have to go as a result of the uncertain economic climate.

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