Merrill readies another huge write-down

Investment bank Merrill Lynch & Co. announced late Monday that it will record yet another huge write-down as it sells off most of its troubled asset-backed securities and terminates hedging positions linked to bond insurers in an effort to shed its riskiest businesses, according to Crain's New York Business.

With the sales, Merrill Lynch expects to record $5.7 billion pre-tax writedowns in the third quarter.

The Manhattan-based firm also said it plans to raise $8.5 billion by selling shares in a public offering. Temasek Holdings, Singapore’s sovereign wealth fund, has agreed to purchase $3.4 billion of Merrill’s common stock as part of that exercise.

Senate bill stalls; talks continue

A Democratic bill that would impose limits on institutional investments in energy commodities failed to pass a procedural vote in the Senate this morning, but aides to Democratic and Republican Senate leaders said they would continue working through the weekend toward a compromise that could clear the way for a full vote, according to Pensions & Investments.

The legislation, introduced by Senate Majority Leader Harry Reid, D-Nev., and other Senate Democrats on July 15, has been stalled by a dispute between Senate Democrats and Republicans about what other provisions besides speculation limits should be included in the bill.

Ex-JPMorgan banker arrested

Former JPMorgan Chase & Co. banker Hernan Arbizu was arrested on Monday in Buenos Aires on charges that he stole nearly $5.4 million from the accounts of customers at UBS AG and JPMorgan Chase & Co., according to published reports.

Prosecutors at the U.S. District Court in New York said that Mr. Arbizu, a former vice president in the private banking division at JPMorgan, was charged with embezzlement by a bank officer, bank fraud, identity theft and 12 counts of wire fraud, according to Dow Jones Newswires.