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Fakahany Says Merrill Enhanced Risk Management Before Crisis

Merrill Lynch & Co. enhanced risk controls in the years before mortgage losses eroded its capital and led to a forced sale to Bank of America Corp. in 2008, former co-President Ahmass Fakahany said.

“The risk dynamic in the financial-services industry was getting broader and more complicated, especially on the regulatory front, and so we had to buttress our capabilities,” Fakahany, 52, said in an interview aired today on Bloomberg Television. “We expanded the number of risk managers on the trading floor.”