Merrill acknowledges SEC probe
Merrill Lynch & Co. Inc. has acknowledged that the SEC is investigating the firm for matters related to its holdings of high-risk mortgage debt.
Merrill Lynch & Co. Inc. has acknowledged that the SEC is investigating the firm for matters related to its holdings of high-risk mortgage debt.
The New York-based financial services company said that the staff of the SEC began the investigation on Oct. 24 and that it is cooperating fully with the inquiry, according to a filing with the SEC.
The investigation began on the same day that the company posted a $2.24 billion third quarter loss related to the summer’s credit crunch and announced a $7.9 billion write-down that was attributed to collateralized debt obligations and subprime mortgages (InvestmentNews, Oct. 24) .
One week later, E. Stanley O’Neal, Merrill’s former chief executive, stepped down as chairman and chief executive, announced his departure from the company after nearly five years at the helm (InvestmentNews, Oct. 30) .
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