Mortgages cause $7.9B write-down, loss at Merrill Lynch

[Lone_Star_Dem]

Source: AP - Via USA Today

NEW YORK — Merrill Lynch (MER), the nation's largest brokerage, said Wednesday that the summer's credit crisis triggered a bigger-than-expected $7.9 billion write-down during the third quarter.

Merrill reported a loss after paying preferred dividends of $2.31 billion, or $2.82 a share, compared with profit of $3 billion, or $3.50 a share, a year earlier. Revenue fell 94% to $577 million from $9.83 billion a year earlier.

Chief Executive Stan O'Neal said the company continues to face uncertainty regarding the impact of its mortgage-related investments.

"In light of difficult credit markets and additional analysis by management during our quarter-end closing process, we re-examined our remaining CDO positions with more conservative assumptions," he said. "The result is a larger write-down of these assets than initially anticipated."

Read more: http://www.usatoday.com/money/companies/earnings/2007-10-24-merrill_N.htm

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Ouch. That's gonna leave a mark.

[shain from kane]

1. Remember, these are the smart people. n/t

[Lone_Star_Dem]

2. Terrifying, isn't it? n/t

[CountAllVotes]

3. oh great

my girlfriend has ALL of her $ in Merrill Lynch. I told her to get at least some of it out of there but she wouldn't listen.

:kick: