Merrill shut its branch specializing in subprimes

Merrill shut its branch specializing in subprimes


Merrill Lynch's intention to close most of its division subprimes ", First Franklin, in reaction to the continuous deterioration of the American market, real estate credit, says the television channel CNBC.

That decision could result in the elimination of 400 to 500 positions, from next week, says the chain. She said that the American investment bank, however, would retain the activity of Franklin in the management of claims already made.

Jessica Oppenheim, spokesman for Merrill, declined to comment.

The bank makes more mortgages "subprimes" for customers with a credit risk profile, since Dec. 28. She said Monday "to consider the future of its presence in this market."

Merrill, American number one brokerage, First Franklin had bought the bank to Cleveland, National City, in December 2006 for $ 1.3 billion, to grow in a market that generated substantial profits while for competitors like Lehman Brothers Holdings.

Merrill has signed this acquisition just before the crisis broke out subprime market.

The bank declined to say how many employees still worked at First Franklin. The division had a staff of 2,500 people in late 2006.