Merrill Lynch is set to be the latest US investment bank to take on a foreign capital injection.
Reports across the Atlantic suggest Merrill is in advanced talks with the Singapore Government’s Temasek Holdings over a $5bn deal.
Merrill is understood to be expecting to writedown a further $8bn in Q4, as fallout from the sub-prime crisis continues.
The news follows rival Morgan Stanley announcing on Wednesday it is to offload a 9.9% stake to the China Investment Corp, China's sovereign wealth fund, for $5bn.
Citigroup last month received a $7.5bn injection from Abu Dhabi's sovereign wealth fund, while Swiss investment bank UBS reported it is to sell an 11.5% stake to the Singapore Investment Corp and an anonymous investor for $11.2bn.
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