Merrill Lynch CEO says 'balance-sheet shrinkage' to continue |
| MarketWatch - Apr 8, 2008 |
Merrill Lynch & Co. Chief Executive Office John Thain said Tuesday that writedowns at the brokerage would likely continue to affect its balance sheet but denied the U.S. financial giant would need to raise more capital.
"We deliberately raised more capital than we lost...(but) the shrinkage of our balance sheet will continue," said Thain.
The Wall Street institution raised $12.8 billion in fresh equity over the past five months in a bid to shore up its finances following a $8.6 billion net loss for 2007 it racked up stemming largely from subprime-linked losses.
Many analysts are expecting a further wave in writedowns next week, when the bank is scheduled to report first-quarter earnings for 2008.
The timing of Thain's first trip to Tokyo as Merrill's CEO stoked speculation among some observers that he may have come to Japan to discuss Merrill's ties with Japanese mega-bank Mizuho Financial Group Inc. (8411.TO).
Read Full Article from MarketWatch
- Posted: 2008-04-08 08:58:04
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