Merrill predicts dire first quarter
Unlike the earlier write-downs, the latest round is not solely connected to subprime loans
Merrill Lynch & Co. Inc. will likely post a first-quarter loss from write-downs of $6 billion to $6.5 billion, company executives told CNBC television.
Unlike the earlier write-downs that have plagued Wall Street firms, the latest round is not solely connected to subprime loans but also commercial-real-estate-debt exposure and other types of loans, they said.
New York-based Merrill has already written off $24 billion worth of investments related to the troubled U.S. mortgage market.
The company is scheduled to report its first-quarter results April 17.
Earnings estimates for Merrill range from a loss of 68 cents to $3 per share for the quarter.
A spokeswoman for Merrill declined to comment.
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