Merrill Lynch Losing Right And Left

17 07 2008

US bank Merrill Lynch has posted a $4.89bn (£2.49bn) loss in the three months to June due to heavy exposure to the sub-prime mortgage market.

It was the fourth quarterly loss in a row for Wall Street’s third-largest investment bank and was far bigger than analysts had expected.

Merrill announced it would write-down $9.4bn because of US mortgage market and other high risk investments, and must now sell billions of dollars of assets to shore up its finances.

The new charges come on top of nearly $29bn in write-downs that the brokerage had already taken because of tightening credit markets.


Actions

Information

One response

30 07 2008
Timing Real Estate Opportunities « $ Millionaire Fifties Club (MFClub)

[…] Star, a private equity firm, bought the Merrill assets at a discount. Lone Star obviously sees value in Merrill’s non-performing assets. Those of you […]

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s




%d bloggers like this: