Posts Tagged ‘Economy’
Merril Lynch Posts More Losses
US bank Merrill Lynch has posted a $4.89bn (£2.49bn) loss in the three months to June due to heavy exposure to the sub-prime mortgage market.
It was the fourth quarterly loss in a row for Wall Street’s third-largest investment bank and was far bigger than analysts had expected.
Merrill announced it would write-down $9.4bn because of US mortgage market and other high risk investments.
It must now sell billions of dollars of assets to shore up its finances.
Looks like Lynch is gonna have to give up their 20% ownership in news and data provider Bloomberg… going for $4.43bn and also selling its controlling stake in Financial Data Services.
This is what happens when seemingly intelligent people plan for pockets that are already lined with silver.