Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Merrill gets $6.6 billion boost

Merrill receives major investment from Kuwait Investment Authority, Korean Investment Corp. and Japan's Mizuho Corporate Bank.

Subscribe to Companies
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By Aaron Smith, CNNMoney.com staff writer

Do you think the worst is over for the financial sector?
  • Yes
  • No
  • Not sure

NEW YORK (CNNMoney.com) -- Wall Street firm Merrill Lynch & Co. Inc. said Tuesday that it had received investment totaling $6.6 billion primarily from three foreign investment funds.

Merrill, the nation's largest broker, will sell preferred stock to the Kuwait Investment Authority, the Korean Investment Corp. and Mizuho Corporate Bank.

TPG-Axon Capital, The New Jersey Division of Investment, The Olayan Group, and T. Rowe Price Associates also are among the investors.

The multi-billion dollar cash injection comes on the heels of the $6.2 billion investment Merrill received last month from Singapore's Temasek Holdings and Davis Selected Advisors.

"One of my main priorities over the last several weeks has been to ensure Merrill Lynch's balance sheet is strong, and these transactions make certain that Merrill Lynch is well-capitalized," Merrill CEO John Thain said in a statement.

Merrill's former CEO Stan O'Neal left the company in October after the firm suffered its biggest quarterly loss ever, due largely to giant write-downs tied to bad bets it made on mortgage investments.

The financial sector overall is reeling from the subprime loan debacle, and analysts are expecting bad news from the major firms that report earnings this week.

Citigroup (C, Fortune 500) said Tuesday that it suffered a nearly $10 billion loss in the fourth quarter. The firm reported an $18 billion write-down related to mortgage investments and said it was slashing its dividend.

Citi also said it received a $12.5 billion infusion from investors in Kuwait, Singapore and the state of New Jersey and intends to raise an additional $2 billion.

Next on tap is J.P. Morgan (JPM, Fortune 500), which reports Wednesday. Merrill is slated to release earnings on Thursday. To top of page

Photo Galleries
Super Bowl 50 ads are studded with celebrities The 2016 Super Bowl has rolled out the red carpet for the likes of Helen Mirren, Amy Schumer, Seth Rogen, Steven Tyler and the late, great Marilyn Monroe. More
The women of marijuana These women entrepreneurs and executives are making their mark in the marijuana industry. More
Most expensive collector cars from the Scottsdale auctions These are the most expensive collector cars sold at the Scottsdale auctions. More
Sponsors