Merrill Lynch (NYSE: MER) will take a $1.3 billion investment from Mizuho Financial, a large Japanese bank, according to The Wall Street Journal.

The investment is notable for two reasons. The first is that it is not coming from a sovereign fund in a country like Singapore, China, or an oil-rich country in the Middle East. This is a sign that private capital believes that a big U.S. financial institution could see a rebound in its value near-term.

The other notable aspect of the investment is that it is modest. It may be a sign that Merrill is not in trouble as deeply as Citigroup (NYSE: C) is. The media and analysts have speculated that the big bank may need to bring in over $10 billion to shore up its finances.

Merrill may be doing somewhat better than Wall Street imagined. It may be a sign that at least one big financial firm has hit bottom.

Douglas A. McIntyre is an editor at 247wallst.com.

MAJOR PAPERS:

• Japanese bank Mizuho Financial Group Inc (NYSE: MFG) is today expected to announce that it will invest $1.3B in ailing Merrill Lynch & Co Inc (NYSE: MER), reported the Wall Street Journal. Merrill will also sell a Mizuho unit, Mizuho Corporate Bank.
• According to people familiar with the plans, the Wall Street Journal reported that Citigroup Incorporated (NYSE: C) is expected to announce a "sizable dividend cut" when it reports fourth quarter earnings this morning. The company is also expected to receive a cash infusion of at least $10B and a mortgage related write-down of as much as $20B.

• The Tories will not hinder Northern Rock nationalization, the UK Times reported. Shareholders are set to vote today on key proposals that could block a private sector sale of the bank.

• According to a source, VentureBeat reported that Facebook is "one hundred percent buying" early social-networking site Plaxo.