Merrill Fades - Lim Walks

Now TJ Lim, Merrill's European head of debt, has resigned 'to pursue outside interests.'

Merrill's European bond division suffered in the late 1990s and lost staff when the firm decided to let go 3,400 people in 1998. Lim, who in his second spell at Merrill, headed the European division for two years. He previously said that 'we were in downsizing mode in late '98 when others were growing aggresively.'

The fixed income divisions of investment banks has often been the most profitable part of the operation in recent times. At Merrills, they appear to have missed the boat and the firm is thought to have trimmed 10% off Lim's headcount in the previous 12 months to save on costs.

With investment banking generally in the doldrums, equities suffering from the bad press surrounding the Spitzer and SEC investigations and debt in a mess in Europe, commentators wonder just what the game plan is at Merrill Lynch.