Article: Federal probes could roust Merrill from syndicate.((Merrill Lynch & Co., New York, NY bond underwriting syndicate))

New York City finance officials say they would be prepared to drop Merrill Lynch & Co. as a senior underwriter if federal investigators find that the firm has engaged in wrongdoing.

In October, the city appointed Merrill as one of four senior managers in its general obligation bond syndicate. Given that the city is one of the largest issuers of municipal debt, the slot is considered a premier underwriting assignment.

Since Merrill's selection, officials working for Mayor Rudolph W. Giuliani and city Comptroller Alan G. Hevesi say they have closely monitored investigations by the Securities and Exchange Commission and the Justice Department concerning Merrill ...

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