Citigroup, Merrill Lynch try to recover from huge subprime losses

Citigroup and Merrill Lynch have announced plans to counter enormous
losses tied to subprime mortgage investments. Citigroup, which just
posted the biggest loss in its history, said it received $12.5 billion
from outside investors to help recover from an $18 billion write-down.
The bank is expected to announce that it will cut 4,000 positions,
following 17,000 job cuts announced last spring. Merrill Lynch will
raise $6.6 billion from three foreign investment funds, following a
December sale of a $7.5 billion stake to Singapore’s government and an
asset manager.