Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Merrill Braces for $6B-$8B in New Writedowns

Subprime woes mean unprecedented third consecutive losing quarter for brokerage

By Jim O'Neill, Newser User

Posted Apr 16, 2008 10:28 AM CDT

(Newser) – Merrill Lynch is likely to report another $6 billion to $8 billion in writedowns related to the subprime collapse tomorrow, leading to a third consecutive quarterly loss, the Wall Street Journal reports. Merrill’s chronic mortgage losses—$30 billion and counting—show just how deep... Read full story »

COMMENTS

Read the comment policy

You need to Log in to Newser to comment. Don't have an account yet? Sign up now!

There are no comments

A snapshot of the day's best news stories.

View Larger Grid

All Today Yesterday Pick a Date

What's Popular Now on Facebook

Cops Shoot Naked Guy Eating Man's Face on Highway

Japanese Artist Serves Up Own Cooked Genitals

Wall Street Journal (Source Grid »)

Merrill looks to China for growth
Reuters

Merrill takes independent road on research
Forbes

Money

Merrill Lynch • John Thain • brokerage • writedowns • subprime crisis

More Newser Stories

Merrill Lynch Posts Steep Q1 Loss

$9B in writedowns guts brokerage's earnings

(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. More»

Markdown Sparked Lehman Meltdown; More to Come

Other firms could follow suit, meaning widespread losses

(NEWSER) - What caused two venerable investment banks to implode this weekend, and how much more damage can we expect? It started when Lehman Bros. surprised markets by slashing the valuation of its mortgage holdings last week, making downward revisions so steep that "even longtime bears on the stock thought the firm was finally marking its residential portfolio to realistic levels," the Wall Street Journal writes. This prompted investors’ fears that other firms would follow suit, driving losses all around. More»

Merrill Panic May Mark Bottom of Stock Market

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

(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. More»

Another Head Rolls at Merrill Lynch

Co-president will step down in wake of huge subprime losses

(NEWSER) - Merrill Lynch co-president Ahmass Fakahany will step down after subprime mortgages led to a $9.8 billion fourth-quarter loss, the firm said today. Fakahany is at least the third exec from Stan O'Neal's team to leave since John Thain took over as CEO, reports Bloomberg. Thain replaced O'Neal in October following almost-as-horrifying third-quarter losses. More»

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

Latest loss, driven by mortgage woes, dwarfs original figure

(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. More»

NEWS FROM OUR PARTNERS

What is Newser?

Face it: there's too much news. At Newser, we choose the most thought-provoking and entertaining stories from hundreds of US and international sources and reduce them to a headline, picture, and two paragraphs. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »

Partnering with: Slate

View Newser on the mobile website

Merrill Braces for $6B-$8B in New Writedowns

Subprime woes mean unprecedented third consecutive losing quarter for brokerage

Merrill Lynch • John Thain • brokerage • writedowns • subprime crisis

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Merrill Lynch Posts Steep Q1 Loss

$9B in writedowns guts brokerage's earnings

Markdown Sparked Lehman Meltdown; More to Come

Other firms could follow suit, meaning widespread losses

Merrill Panic May Mark Bottom of Stock Market

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

Another Head Rolls at Merrill Lynch

Co-president will step down in wake of huge subprime losses

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

Latest loss, driven by mortgage woes, dwarfs original figure

About Us

Site

Community

Site Maps

Tools

More News

What is Newser?