Analyst sees 2Q losses for Merrill, UBS

Banc of America Securities LLC expects Merrill Lynch & Co. Inc. and UBS AG to post second-quarter losses on write-downs, according to published reports.
Michael Hecht, an analyst at the New York-based investment banking arm of Charlotte, N.C.-based Bank of America Corp., said he expects a quarterly loss of $1 a share for New York-based Merrill because of a $3.5 billion write-down. That compares with his earlier estimate of a profit of 21 cents a share.
Mr. Hecht’s more pessimistic prediction is based on the premise that the bank’s collateralized debt obligations and mortgage-related exposures would be more severe than previously thought, according to a Reuters report.
He also cut his estimate for Zurich, Switzerland-based UBS to a loss of $1.70 a share, from a profit of 31 cents.
Mr. Hecht predicted that the company’s U.S. subprime exposure would outpace its other segments, including wealth management, investment banking and asset management.