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Merrill: $9.8B Loss on $11.5B Writedown

Brokerage's first-ever full-year loss blamed on subprime woes

By Jim O'Neill, Newser User

Posted Jan 17, 2008 6:31 AM CST

(Newser) – Merrill Lynch reported a fourth-quarter loss of $9.8 billion, or $12.01 a share, nearly triple the per-share loss most analysts predicted, reports Bloomberg. It was the second straight losing quarter for the nation’s largest broker, and capped the company’s first full-year loss since 1989. Merrill said it took $11.5 billion in writedowns on subprime mortgage-related securities.

The disastrous fourth quarter resulted in a $7.78-billion loss for the year for Merrill, one of three of the Big Five Wall Street securities firms hit hard by bad bets on the subprime mortgage market. Morgan Stanley and Bear Stearns also reported huge fourth-quarter losses. CEO John Thain, who took over in December, has shored up the company’s balance sheet with $12 billion from outside investors.

John Thain, CEO of Merrill Lynch. The company reported a $9.8 billion loss in the fourth quarter. (Getty Images)

: A man walks past a sign at the entrance of Merril Lynch headquarters in New York. The company reported a fourth quarter loss of $9.8 billion. (Getty Images)

Wall Street biggest broker, Merrill Lynch, reported a $9.8 billion fourth-quarter loss. (Getty Images)

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Merrill: $9.8B Loss on $11.5B Writedown

Brokerage's first-ever full-year loss blamed on subprime woes

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Bank of America Loses $2.2B as Loans Sour

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Third quarter earnings show recovering bank, struggling brokerage

SocGen Posts Record $4.9B Q4 Loss

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Swiss bank also posts its first annual loss on $13.7B subprime writedowns

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Merrill: $9.8B Loss on $11.5B Writedown

Brokerage's first-ever full-year loss blamed on subprime woes

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OTHER STORIES ON OUR RADAR

subprime mortgages • Merrill Lynch • corporate earnings

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Bank of America Loses $2.2B as Loans Sour

Investment revenues up, but consumers default on nearly $10B

Citi Losses Less than Expected; Merrill Drops $5B

Third quarter earnings show recovering bank, struggling brokerage

SocGen Posts Record $4.9B Q4 Loss

Subprime writedowns and fraud drop bank's annual profit 82%

UBS Posts Record $11.2B Quarterly Loss

Swiss bank also posts its first annual loss on $13.7B subprime writedowns

Feds Eye UBS as Subprime Probe Widens

Criminal prosecutors target Swiss banking giant for mispricing

About Us

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Newser By Users

Community

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What is Newser?