Swiss giant UBS has announced it will split its business divisions into three separate units as the bank recorded another $5.1bn write-down in the second quarter.
Merrill Lynch plans to raise $8.5bn through new shares as the US investment banking giant faces a further $5.7bn write-down in Q3.
Billionaire hedge fund manager John Paulson has warned global credit crisis write-downs and losses could reach $1.3trn.
Shares in US investment banks fell sharply yesterday as a number of Standard & Poor's (S&P) credit downgrades sparked fears of fresh write-downs and further losses in second quarter trading.
JPMorgan Chase has seen its Q1 income plummet 50% to $2.4bn after reporting another substantial bad credit write-off.