Merrill Lynch Reports Loss on $8.4 Billion Writedown |
| Bloomberg - Oct 24, 2007 |
Merrill Lynch & Co. reported the biggest quarterly loss in its 93-year history after $8.4 billion of writedowns, the most by any securities firm.
The third-quarter loss of $2.24 billion, or $2.82 a share, was about six times higher than the New York-based firm estimated on Oct. 5. Merrill wrote down the value of subprime mortgages, asset-backed bonds and loans to finance leveraged buyouts, and Chief Executive Officer Stanley O'Neal said in a statement today that he is ``working to resolve the remaining impact from our positions.''
Merrill fell as much as 3.1 percent in New York trading and is now performing worse than any of its four largest rivals, after O'Neal misjudged the severity of the decline in the credit markets since July. Investors who lauded the 56-year-old CEO for chasing higher returns now question whether he policed the risks as he pushed the firm to become the biggest underwriter of debt securities backed by subprime loans.
Read Full Article from Bloomberg
- Posted: 2007-10-24 10:19:20
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