NEW YORK, Dec. 21 (UPI) -- Merrill Lynch, facing additional write-downs because of poor performing U.S. mortgage notes, may be in talks with a Singapore firm about a cash infusion.
Temasek Holdings, a state-owned Singapore investment company, reportedly is in advanced talks about pumping up to $5 billion into Merrill Lynch, a person familiar with the matter told The Wall Street Journal. Neither company would comment on the Journal report.
Word of the possible cash infusion comes amid predictions that mortgage write-downs at the New York financial firm may increase another $8 billion or more in the fourth quarter.
Temasek's board has given preliminary approval to the investment in Merrill Lynch, although pricing, timing and regulatory issues remain on the table, the source told the Journal, adding that a deal between the two entities may not be struck. Merrill Lynch may be in discussions with other investment funds besides Temasek.
