Survival Instinct Drives the Herd to Seek Shelter

Summary


The bunting was out, it was trebles all round and Merrill Lynch, the Thundering Herd of investment banking, galloped in last week with a record third-quarter profit of $1.4 billion (Pounds 790 million).

Yes, rivals such as Goldman Sachs had already turned in vintage performances thanks to the buoyancy of the merger market and soaring volumes of share and debt trading. But for Merrill it marked a return to form after its recent failure to take advantage of strong markets and doubts over whether parts of its business would ever recover from the savage cost-cutting of chairman and chief executive Stan O'Neal.

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Extract


Survival Instinct Drives the Herd to Seek Shelter

Last week though, O'Neal was boasting that practically every part of Merrill's operation had broken some record or other.

Yet only a few months ago, it appears O'Neal was far less confident.

Financial Mail has...

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