Another high ranking Merrill Lynch Axing - Ahmass Fakahany, co-president, Peace out

Merrill officials had no immediate comment, but Fakahany is widely regarded as one of the key architects of Merrill's strategy of ramping up balance sheet risk by holding risky bonds packed with subprime mortgages that led to its writedown of more than $14 billion.

Meanwhile, CNBC has learned that the firm is now looking to cut costs. Merrill's Brokerage Department Chief Robert McCann is conducting a massive review of the brokerage-department's costs that will likely lead to layoffs in the department, according to one person with knowledge of the matter. The layoffs, however, aren't expected to touch at least initially the firm's 16,610 brokers, but will focus on other personnel, this person said.