Morris shorted the sluts well before Sept 11th until he btc today.. Where no wise man would fear to tread because they're America's profit machine.
>Merrill Lynch is to offer a severance deal to all its 65,900 employees on Monday, a move that is likely to result in Wall Street's most sweeping lay-offs as the securities industry contends with a slowing economy and falling profits.
The severance package, which could total more than a year's salary to employees if they agree to resign by early November, is part of an effort by the world's largest brokerage to restructure its far-flung operations.
It also is the first decisive action that Merrill has taken to reorganise itself after the broker's top executives had said in recent days that they were considering a restructuring that could result in thousands of job losses. Although voluntary severance packages have been common on Wall Street this year, none has been on the scale of the Merrill package.
Merrill reported a 52 per cent fall in third-quarter earnings on Thursday. Like other Wall Street firms, its investment banking revenues have dried up as mergers and acquisitions activity and equity underwriting have gone quiet.
But Merrill has been particularly hard hit by the fall in the stock market because of the costs associated with its vast retail brokerage business. The broker's staff had nearly doubled during the bull market of the last decade.
Merrill said it had already cut 6,800 employees - 9 per cent of staff - since last year's third quarter. The broker took $152m in severance costs during the most recent quarter.
Still, David Komansky, Merrill's chairman, said on Thursday that the broker was "sized inappropriately" and that steps would be taken to correct that.
All of Merrill's 65,900 employees will be offered voluntary retirement on Monday in exchange for what the company calls a "generous" severance package.
The percentage of annual salary that they receive will depend on their length of service with the firm. They will also receive a "significant" portion of their 2000 bonus.
The offer will expire in early November, and employees must have the approval of their manager to participate.
Merrill has already taken aim at its overseas private client units in Japan and other markets, which have been slow to develop in the current climate.
It is likely that many long-time brokers in the US who prospered during the recent bull market will want to sit out the current slump.
Other Wall Street rivals have been trimming staff throughout the year to cope with the slump in the securities business.
Credit Suisse First Boston and Bear Stearns have both announced deep job cuts since September 11.
Although voluntary severance packages have been common on Wall Street this year, none has been on the scale of the Merrill package. |
