Skip navigation
Watchlist Sponsored By :

Current DateTime: 10:04:18 04 Jul 2009
LinksList Documentid: 24355697
  • Collection of Michael Jackson

      Earlier this year, Jackson sought to auction his personal items. Although it never came through, here's a look at what was almost sold.

  • Recession-Resistant US Cities

      Some cities have been hit much harder than others during the recession. Here are the metro areas faring the best.

  • How Much For A T-Bone Steak?

      From the cost of a T-bone steak to a monthly phone bill, the price for everyday items can vary dramatically across the country.


Current DateTime: 10:04:18 04 Jul 2009
LinksList Documentid: 24890560
  • Boom, Bust and Blame

      The inside story of the economic crisis that has gripped the entire world.

  • E3: Gaming's Cutting Edge

      North America's premier computer and video game trade show draws tens of thousands of professionals to experience the future of interactive entertainment.

  • The Fall of GM

      A look into the fall of General Motors as the automaker heads toward bankruptcy and an effective nationalization.

Merrill Likely to Write Down Up to $6.5 Billion More
By: Charles Gasparino, , On-Air Editor | 09 Apr 2008 | 01:55 PM ET
Text Size

Merrill Lynch is likely to post a first-quarter loss on further writedowns of between $6 billion and $6.5 billion, according to senior executives at the company.

Merrill Lynch
CNBC.com
Merrill Lynch

Unlike earlier writedowns at Merrill [MER  Loading...      ()   ] and other Wall Street investment banks, the latest round of writedowns is not solely tied to subprime loans, but instead is linked to commercial real-estate debt exposure and other types of loans, these people said.

Merrill so far has written down $24 billion worth of investments related to the troubled U.S. mortgage market.

Merrill is scheduled to report its first-quarter results on April 17. (Video: Charlie Gasparino reports on Merrill's potential writedowns)

On average, analysts surveyed by Thomson Financial are expecting Merrill to post a loss of $1.90 a share. However, the estimates range from a loss of $3.00 a share to a loss of 68 cents a share.

Merrill recently asked its trading desk to unload inventory in an effort to reduce the size of its balance sheet and shore up its credit rating, CNBC has learned.

Merrill's bond rating is now secure, these executives said.

Merrill's efforts follow comments by Chief Executive John Thain, who said Tuesday that the investment bank does not plan on raising any new capital.

Thain spoke at a briefing in Tokyo and said that he expected writedowns would continue to impact Merrill's balance sheet. However, he said, he didn't think the firm would need to raise more capital because it had already raised more capital than it lost.

© 2009 CNBC.com
Tools:
Print EmailAdd This share icon


Current DateTime: 01:01:47 04 Jul 2009
LinksList Documentid: 29778428

Current DateTime: 01:04:09 04 Jul 2009
LinksList Documentid: 29779196

Current DateTime: 01:01:47 04 Jul 2009
LinksList Documentid: 29779199

Current DateTime: 01:04:10 04 Jul 2009
LinksList Documentid: 29779198
CNBCCNBC
About CNBC  |  Site Map  |  Privacy Policy  |  Terms of Service  |  Video Reprints  |  Advertise  |  Help  |  Contact
Partners: AOL Money  |  BloggingStocks.com
CNBC is a Division of NBC Universal
  Data is a real-time snapshot *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
Thomson ReutersThomson Reuters