The Kuwait Investment Authority is expected to be a significant investor in Merrill Lynch as the US investment bank seeks $4 billion in a second capital raising, acccording to the Financial Times. KIA, which may also invest as much as $2 billion or $3 billion in Citigroup, is emerging as a large source of rescue finance on Wall Street. The sovereign wealth fund is changing its strategy in order to move more quickly than competitors and seize opportunities amid the turmoil in the US credit markets. The price and terms of the deals at Citi and Merrill are still in negotiation, the report said. But the deal with Merrill could be announced as early as midweek, with other investors possibly coming from Europe. The latest round of capital raising comes at the start of a round of earnings reports during which big US banks and brokers are expected to reveal as much as $40 billion in further mortgage-related writedowns. Merrill raised $6.4 billion last month from Temasek, the Singapore government-owned fund, and Davis Selected Advisors, a New York-based asset manager.