Merrill Lynch couldn’t escape the housing crash as record waves of homeowners defaulted on their mortgages.

Some brokers caught in the middle of the credit squeeze and stock market downturn are leaving the big institutions.

Merrill Lynch, the investment bank that sold itself to Bank of America last month, reported a third-quarter loss on Thursday of $5.1 billion, or $5.56 a share.

Merrill Lynch’s chief, John A. Thain, will essentially retain control of the businesses run by Merrill in the combined company.

During a 36-hour period two weeks ago, the fissures opening in the worldwide financial system convinced policy makers that they needed to act quickly.

Merrill Lynch’s chief, John A. Thain, will essentially retain control of the businesses run by Merrill in the combined company.

During a 36-hour period two weeks ago, the fissures opening in the worldwide financial system convinced policy makers that they needed to act quickly.

The extent of the credit crisis that unfolded from the morning of Wednesday, Sept. 17 to the afternoon of Thursday, Sept. 18. was unseen to the public but spooked policy makers into action.

For most of the financiers who remain, with the exception of a few superstars, the days of easy money and supersized bonuses are behind them.

On Wall Street, a black day is almost always followed by black humor in trading floor jokes, finance blogs, videos circulated on YouTube and doctored photos sent by e-mail between traders.