As subprime securities find a price, banks could discover they lost less than they thought. Which bank will be the first to say they overstated their subprime writedown?
I think Merrill appears most likely to overstate writedowns, says Karen Finerman. But not right now. Maybe the quarter after this.
I agree, says Guy Adami. Merrill has a huge wealth management business which essentially makes it a baby boomer play.
The dirty secret is no-one really know how much to writedown, counters Jeff Macke. Even Citigroupcould overestimate their writedowns because they were so huge!