Merrill Lynch & Co. Inc. (MER) Reports a Loss!
Investment bank Merrill Lynch & Co. said Friday credit and mortgage woes will lead it to post a third-quarter loss, as it takes almost $5 billion in writedowns in the wake of a credit crunch that paralyzed Wall Street this summer.
The bulk of the losses will come from marking down the value of complex instruments known as collateralized debt obligations or CDOs, and from declines in subprime mortgages -- loans given to customers with poor credit history.
Credit rating agencies Moody's Investors Service and Fitch Ratings both placed Merrill Lynch on a negative outlook based on the expected quarterly losses. That means the agencies could lower Merrill Lynch's ratings in the coming weeks, making it more expensive to borrow money.
The bulk of the losses will come from marking down the value of complex instruments known as collateralized debt obligations or CDOs, and from declines in subprime mortgages -- loans given to customers with poor credit history.
Credit rating agencies Moody's Investors Service and Fitch Ratings both placed Merrill Lynch on a negative outlook based on the expected quarterly losses. That means the agencies could lower Merrill Lynch's ratings in the coming weeks, making it more expensive to borrow money.
Labels: Merrill Lynch and Co. Inc. MER
posted by Stock Administrator @ 2:54 PM
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