Merrill Mulls SEC Filing to Provide Details of CDO Sale

Amid growing criticism over its recent plan to sell troubled assets, Merrill Lynch is weighing whether to make an official filing with the Securities and Exchange Commission that will lay out new details about the deal's terms and conditions.


The filing, which could come as early as Monday, would provide new details about the sale of the CDOs, which has drawn considerable criticism over its structure, including the sale of trouble mortgage paper for just pennies on the dollar.

So far, Merrill has only issued a press release on the deal. But after the filing is made, senior Merrill officials are expected to start making public statements about why the deal is good for the firm.

Merrill Lynch officials, including CEO John Thain, haven't commented on the deal since its announcement on Monday night. A Merrill spokeswoman had no comment.

At the moment, Merrill is not providing much information on exactly what type of CDOs it is selling: The Triple-A variety or some derivative.

For that reason, analysts can't figure out if Merrill is getting a good deal.

Other terms and conditions, like when the fund that purchased the CDOs, Lone Star, can exercise its right to sell the CDO back to Merrill.

Those details are like to be made public in the filing ... if and when Merrill decides to make it.