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Merrill Lynch Posts Steep Q1 Loss

Posted Apr 17, 08 7:25 AM CDT in Business 

(Newser) – Merrill Lynch today posted nearly $2 billion in losses in the first quarter, after taking another $9 billion in writeoffs, the Wall Street Journal reports. In its third straight quarterly loss, Merrill was in the red $1.96 billion, or $2.19 a share, compared to earning $2.16 billion, or $2.26 a share a year ago. The company said it will cut about 3,000 jobs.

The new round of Merrill writeoffs includes $1.5 billion in CDOs, $3.5 billion in residential mortgage-backed securities, $925 million on leveraged loans and $3 billion on hedges with financial guarantors. Citi, BofA and Countrywide are up next.

Source Wall Street Journal

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A Merrill Lynch office is seen in New York.   (AP Photo/Seth Wenig, file)
Merrill Lynch CEO John A. Thain is seen in this May 22, 2006 file photo.   (AP Photo/Richard Drew, file)
People arrive at the Merrill Lynch building on a rainy morning in New York.   (AP Photo/Brian McDermott, file)
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