The move will result in the elimination of 400 to 500 jobs. Merrill plans to retain the unit's loan servicing business. The brokerage house bought First Franklin from National City Corp in December 2006 for $1.3 billion. Merrill, however, quit originating subprime loans last Dec. 28. It reported mortgage-related losses and write-downs totaling $24.4 billion in 2007, according to reports. The losses led to the ouster of Chief Executive Stan O'Neal. American International Group's Issuer Default Rating (IDR) as well as all holding company ratings and subsidiary debt ratings, including International Lease Finance and American General Finance are still on Rating Watch Negative by Fitch Ratings. The rating agency said this after AIG announced its 4Q07 financial results.