That year, say a number of former Merrill bankers who declined to be identified, that small group pulled in more than $100 million in revenue.

Merrill bankers who have worked with Mr. Kim speak highly of his trading acumen.

Mr. Wittlin's prowess and the fresh source of capital coming from the bank have been the main contributors to this profit boom, Merrill bankers said.

Merrill bankers say that since 2002, the bank's portfolio of assets has been traded more aggressively, resulting in more profits for the unit.

"The only reason we got any M. & A. business is because we bought it with our capital," says a Merrill banker.

"Your average senior banker doesn't know what expenses look like," says a former Merrill banker.

Mr. Gordon is described by former Merrill bankers as having been more of a financial craftsman than a trader.

Lawyers for the Merrill bankers contended that the transaction was legitimate and that no conspiracy was involved.

The top bosses had little choice but to take a hit this year, said one Merrill banker who asked to remain anonymous.

As one senior Merrill banker put it, "Why do our brokers need a Rolls-Royce when they can use a Chevy?"