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Merrill's $15B Write-Down Nearly Doubles Estimate

Posted Jan 11, 08 1:10 PM CST in Business,  US 

(Newser) – Merrill Lynch will announce $15 billion in losses stemming from mortgage investments, figure twice its earlier forecast, the New York Times reports. The firm is expected to raise $4 billion quickly from outside investors. New CEO John Thain, who has already sold a $5.6 billion stake to a Singapore state company, is considering selling off its $4 billion holdings in Bloomberg.

In fighting off a damaged reputation and ebbing capital, the largest US brokerage firm is looking to wealthy foreign governments, just as many other struggling firms have recently. A major Merrill deal with a so-called sovereign wealth fund could spur congressional scrutiny; Charles Schumer expressed concern over “non-economic interests” gaining too much control of American companies.

Source New York Times

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People arrive at the Merrill Lynch building on a rainy morning in New York in this Nov. 15, 2007 file photo. Merrill Lynch & Co. shares rose Friday, Dec. 21, 2007, on a report that the nation's biggest...   (Associated Press)
People leave the headquarters of Merrill Lynch & Co. in New York in this Nov. 14, 2007 file photo. Investment bank Merrill Lynch & Co. on Monday, Dec. 24, 2007 said it sold a stake in itself to Temasek...   (Associated Press)
A man checks his PDA outside the headquarters of Merrill Lynch & Co., Wednesday, Nov. 14, 2007, in New York. The company has tapped New York Stock Exchange head John Thain to lead the world's largest...   (Associated Press)
CEO of the New York Stock Exchange John Thain is seen in Davos, Switzerland in this Jan. 29, 2005 file photo. Merrill Lynch & Co. has tapped Thain to lead the world's largest brokerage through the unfolding...   (Associated Press)
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mortgage crisis  • Merrill Lynch  • Singapore  • Charles Schumer  • John Thain  • sovereign wealth funds  • write down


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