NEW YORK (CNN/Money) - Merrill Lynch & Co. has placed one of its investment bankers on "administrative leave" for not cooperating with a Senate committee investigating the collapse of Enron.

The New York brokerage firm and investment bank said that Schuyler Tilney had decided, upon advice of counsel, not to testify at a hearing set for Tuesday into the Enron's financial problems. Tilney will remain on Merrill's payroll despite the leave, the company said.

"Merrill Lynch is cooperating fully with the subcommittee and will provide other employees to testify," said the company's statement. It said that it has learned that a former Merrill employee who worked with Enron, Robert Furst, is also going to refuse to testify upon his lawyer's advice.

Merrill's statement claimed that its relation with Enron was limited, and that is has been notified that the firm is not a target or subject of the Justice Department investigation of the bankrupt energy trader.

Merrill said that its relations with Enron included a $7 million equity investment in a company established to operate energy generation barges, as well as serving as a private placement agent for one of Enron's controversial partnerships. Enron's use of partnerships to hide debt off of its balance sheet helped precipitate the financial crisis at the company that eventually led to its bankruptcy filing.

"Merrill Lynch strongly believes its dealings with Enron and (the partnership) were appropriate and proper based on what we knew at the time," said Merrill's statement.

Other financial services firm have been punished by the markets for its relations with Enron. Citigroup (C: Research, Estimates) shares fell 15 percent Tuesday, the day of congressional hearings into Enron included criticism of the company for its role in the Enron financial problems.

Shares of Merrill (MER: Research, Estimates) closed Friday up 51 cents at $34.31.