Citigroup and Merrill Lynch lost a combined $80bn (€60.8bn) before tax from securities and investment banking last year, in one of the starkest signs yet of the bloodbath engulfing Wall Street.

The global markets and investment banking business at Merrill Lynch, whose takeover by Bank of America took effect at the start of this month, lost $40bn before tax from continuing operations in the 12 months to December 26, according to full-year results published today by its new parent, whose own corporate and investment banking unit lost just $21m before tax over the 2008 calendar year.