Merrill fires two executives after subprime crisis

Merrill Lynch has fired two executives in the wake of the subprime mortgage crisis, which could see the bank suffer significant losses.

Osman Semerci, the London-based global head of fixed income, currencies and commodities, and Dale Lattanzio, London-based head of structured credit products, have both been dismissed. Semerci will be replaced by David Sobotka, previously head of commodities. The bank has not yet reported its results for the third quarter, but some analysts have predicted losses of over $1 billion.

Speaking to Risk in January, Semerci said the derivatives business was central to Merrill's strategy, along with the expansion of alternative products such as securitisation and mortgage-based products.

According to press reports, Dow Kim, the bank's head of global markets, has also departed. His departure was announced in May - he will be setting up a multi-strategy investment firm - but Merrill has reportedly reversed its decision to invest in the firm.

See also: Q&A - Merrill Lynch
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Dow Kim leaves Merrill Lynch