Merrill Lynch Fires 2 Execs at Funds Unit

Merrill Lynch & Co. said it has fired two senior executives at its funds management business for failing to supervise a currency trader accused of misallocating trades to benefit some clients.

A company investigation found that the trader, who left Merrill Lynch Investment Managers this year, had misallocated trading profits and losses since 1995, said Merrill spokesman Nigel Webb. He estimated the case will cost Merrill Lynch $10 million.

As a result of its probe, Merrill fired Tim Manna, the global head of its fixed-income unit, and David Jacob, who was in charge of the division’s operations in Europe, the Middle East and Africa.

The trader worked at Merrill Lynch offices in London and Princeton, N.J.

“We believe it was to enhance his performance record, his own status, because no money has gone missing,” Webb said.