Merrill bleeds more subprime losses

The firm has upped its subprime-mortgage losses to $27.2 billion, $6.3 billion more than earlier reported.
NOV 08, 2007
Merrill Lynch & Co. Inc.has upped its subprime-mortgage losses to $27.2 billion, approximately $6.3 billion more than the company reported in its third quarter earnings, according to Reuters. Additional disclosure from Merrill’s banking operations revealed $5.7 billion more exposure to risky collateralized debt obligations and subprime mortgages at Merrill Lynch Bank USA and Merrill Lynch Bank Trust Co. Exposure to Merrill’s CDOs is now more than $15.8 billion— $600 million more than the firm reported in its quarterly earnings. Analysts predict Merrill’s additional write-downs could top $10 billion, Reuters reported.

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