Merrill Lynch in a Frenzied Race to Oblivion

22 de may de 2007

<body><div id="article"><tr><td height="28" valign="middle" width="184"></td><td valign="middle" width="185"></td></tr><h1>Merrill Lynch in a Frenzied Race to Oblivion</h1><p>May 22 (LPAC)--Merrill Lynch, the giant stock brokerage/investment bank, has made its second hedge fund "investment" in eight months, taking a minority stake in GSO Capital Partners, a firm which specializes in loans to companies with bad credit ratings and other "distressed" investments, Bloomberg reported. GSO, of New York, London, Houston and Los Angeles, is run by Bennett Goodman, who got his start at the infamous Drexel Burnham Lambert dirty money junk bond shop.</p><p>Last October, Merrill Lynch bought a minority stake in DiMaio Ahmad Capital, and last month agreed to invest in a new fund being started by Dow Kim, Merrill's departing co-head of trading and investment banking. Merrill Lynch already owns half of BlackRock Inc., the largest publicly traded U.S. fund manager.</p><p>Merrill Lynch is trying to keep up with Morgan Stanley, Lehman Brothers, Citigroup and J.P. Morgan Chase, which have all been expanding their hedge fund business in a frenzied race to oblivion.</p></div></body>