Merrill (MER) Could Cut Year-End Bonuses by 50%

According to a Bloomberg report, two sources familiar with the situation believe that Merrill Lynch (NYSE: MER) will slash year-end bonuses in half following the never-before-seen turmoil within the financial system.

The sources say that the average bonus reduction will be about 50%, although some traders and investment bankers will see greater cuts in their holiday bonuses. While these reductions seem steep, the Bloomberg article points out that one consulting firm is estimating that Wall Street senior executives will receive a 70% reduction to their bonuses, on average.

Since agreeing to be acquired by Bank of America (NYSE: BAC) on September 15, shares of Merrill Lynch have fallen more than 30% as the US economic crisis has deepened.

In pre-market trading, Merrill's stock is currently down about 4% to $11.07.

Merrill Lynch & Co., Inc., together with its subsidiaries, provides investment, financing, insurance, and related services to individuals and institutions worldwide.

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