Merrill Stops Loans at First Franklin

Merrill Lynch & Co. will eliminate 650 jobs, record a $60 million charge and they also will stop making new home loans through First Franklin Financial, their subprime lender. Franklin Financial was bought by former Chief Executive Officer Stan O’Neal in 2006 after agreeing to pay $1.3 billion for First Franklin in September 2006. First Franklin started in 1981 and had about 2,300 employees when Merrill acquired it from Cleveland-based bank National City Corp. (MER)