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Merrill Panic May Mark Bottom of Stock Market

Once regaled for cavalier confidence, CEO's chief cuts losses

By Clay Dillow, Newser Staff

Posted Aug 1, 2008 10:30 AM CDT

(Newser) – Merrill Lynch CEO John Thain has seen better days, Floyd Norris writes in the New York Times. He's gone from “cockiness to capitulation. Distinction to desperation.” Thain recently unloaded a bundle of his company’s securities for 22 cents on the dollar and raised $8.5 billion from a stock sale. But this uncharacteristic fear could indicate that Wall Street has finally hit bottom.

“It is Wall Street legend that bottoms are made when the most optimistic give up,” Norris notes. “The worst of the economy is almost certainly ahead of us. But it is possible that the worse of the stock market is not.”

In this Jan. 26, 2008 file photo, Chief Executive Officer of Merrill Lynch John Thain speaks during a working session at the World Economic Forum in Davos, Switzerland. (AP Photo/Michel Euler, fi e)

John Thain as CEO of the New York Stock Exchange in 2007. (AP Photo/Richard Drew)

Chairman and Chief Executive Officer of Merrill Lynch & Co. John Thain is shown Wednesday, May 7, 2008. (AP Photo/Gautam Singh)

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Merrill Panic May Mark Bottom of Stock Market

Once regaled for cavalier confidence, CEO's chief cuts losses

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More Newser Stories

Credit Crunch Pinches Entire Lending System

Undercapitalized banks stand to benefit from $1T infusion

Profits Were Fake, Bonuses All Too Real

How risky schemes left bankers flush, banks broke

Denial Exacerbated Meltdown

Banks, like homeowners, refused to believe how bad things really are

Lone Star Buys Big at Mortgage Fire Sale

Texas fund grabs $6.7B in Merrill castoffs, is hungry for more

Merrill Lynch Posts Steep Q1 Loss

$9B in writedowns guts brokerage's earnings

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Merrill Panic May Mark Bottom of Stock Market

Once regaled for cavalier confidence, CEO's chief cuts losses

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OTHER STORIES ON OUR RADAR

Merrill Lynch • CDO • mortgage debt • mortgage backed securities • John Thain • financial sector • subprime crisis • stock offering • banking industry

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Credit Crunch Pinches Entire Lending System

Undercapitalized banks stand to benefit from $1T infusion

Profits Were Fake, Bonuses All Too Real

How risky schemes left bankers flush, banks broke

Denial Exacerbated Meltdown

Banks, like homeowners, refused to believe how bad things really are

Lone Star Buys Big at Mortgage Fire Sale

Texas fund grabs $6.7B in Merrill castoffs, is hungry for more

Merrill Lynch Posts Steep Q1 Loss

$9B in writedowns guts brokerage's earnings

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?