EXCLUSIVE: Veteran Bank Merger Specialist May Join Merrill

Merrill declined to make Orcel or Fleming available for comment.

The miserable state of financial companies is creating some opportunities for investment bankers who can earn large advisory fees by helping these companies stop the bleeding, usually by raising equity or selling assets. Goldman Sachs(GS) has proven especially adept at this.

Perhaps in part because Goldman eminence grise Ken Wilson, a key figure in the firm's unit that advises banks and other financial institutions, is busy advising U.S. Treasury Secretary Henry Paulson, other investment banks see a chance to win some of this high-paying balance-sheet repair work.

Barclays Capital , the investment banking unit of Barclays PLC(BCS), is also looking for bankers with financial institutions expertise as it moves gingerly to expand upon its debt-dominated business and start helping companies raise equity. UBS(UBS) could also have an interest in Barrett, said a senior executive there upon being informed he might be available. Barrett is not believed to have had any material employment discussions with either Barclays or UBS yet, however.

Barrett was head of investment banking at Citigroup(C) predecessor Salomon Brothers in the early 1990's, following its infamous Treasury bond trading scandal. He then became head of the financial institutions group at UBS, moving on to Donaldson, Lufkin & Jenrette and winning a fierce battle to hang on to his position after the firm was bought by Credit Suisse(CS) in 2000.

A headhunter says Barrett is widely believed to have worked out deals at UBS and Credit Suisse that allowed his group to take a 50% cut of the revenues they earned, an arrangement that executives say would be unthinkable today. He is also well-known for making a weekly "commute" to his New York office from his home in Los Angeles.

Barrett left Credit Suisse about four years ago to start the private equity firm with former colleagues Ellman and Thomas Stoddard. Ellman did not return a call to his mobile phone, and Stoddard, who joined private equity giant The Blackstone Group(BX) in June, declined to comment.

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