Merrill could face huge write-down
The firm is expected to take a write-down of $6 billion to $8 billion when it announces its earnings tomorrow.
Merrill Lynch & Co. Inc. of New York may face a large write-down connected with its investments in subprime mortgages and collateralized debt obligations, The Wall Street Journal reported today.
The firm is expected to take a write-down of $6 billion to $8 billion when it announces its quarterly earnings tomorrow morning, the newspaper reported.
Industry analysts expect Merrill to post a first-quarter loss of $1.98 a share, which would be its third consecutive quarterly loss, the longest losing streak in the firm’s 94-year history.
John Thain, Merrill’s chief executive, has said that while more write-downs are expected, the company wouldn’t have to raise additional capital, the newspaper reported.
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