Merrill Lynch has revealed its first quarterly loss since 1998.
It made a net loss of stg£912 million, including charges, in the fourth quarter.
Merrill has spent £1.9 billion on cutting jobs and closing offices amid a slump in business.
The company lost $1.51 a share, compared with a profit of £296 million or 44 cents a share, in the same period a year earlier.
Fourth quarter revenue fell to £842 million, from £1.05 billion a year earlier.
Chairman Mr David Komansky says: "Although equity markets showed signs of stabilising, the fourth quarter operating environment remained challenging.
"While the pace of economic recovery remains uncertain, we are confident that the actions we are taking will yield substantial efficiencies, improve profit margins and enhance our competitive position globally," he said.
PA