It went from bad to worse for Merrill Lynch on Wednesday when the brokerage announced it wrote down the value of its holdings nearly twice as much as it previously warned.
Shares of Merrill Lynch fell $4.51, or 6.7%, to $62.61, after the brokerage said it swung to a third-quarter loss of $2.3 billion, or $2.82 per share, from $3.0 billion, or $3.50 per share, a year ago. Analysts polled by Thomson Financial expected a loss of 45 cents per share.
Merrill was dragged to a loss by bigger-than-expected write-downs on the values of its subprime mortgages and collateralized debt obligations, a type of asset-backed security.
Sell! Sell! Sell!
No comments:
Post a Comment
Your comments are valued greatly. Please adhere to the decorum on the "First time here?" page. Comments that are in violation of any of the rules will be deleted without notice.
3/11 Update - No Moderation
*Non-anonymous commenting is preferred to avoid mix-ups. Anonymous comments are, at the behest of management, more likely to be deleted than non-anonymous comments.