Merrill Lynch; passive third quarter with record

24 Oct

Posted by flicker as Merrill Lynch, News, USA

The investment bank "number one" of the U.S. to make public the budget of the third quarter, said losses to 2.31 billion dollars due to the crisis of credit last August with an impact, the effect of depreciation, of 7.9 billion dollars more than the expected 5 billion anticipated. In terms of revenues, there is a discount of 94% to 577 million dollars and according to the agency Bloomberg suffer losses in the sector of fixed income penalizing other areas such as revenue generated from trading of securities that have risen to 3.27 billion dollars with growth of 23%, but the crisis of loans to high risk Merill Lynch has worked for asset write-downs affecting bonds guaranteed by mortgages, mortgage loans and financing granted in relation to leveraged buyouts and Stanley O'Neal, a number of banking giant, said that the scale of the writedowns is increased after that the bank has conducted additional analysis on its CDO exposure in the so-called structured derivatives, which in their majority have quantitative as collateral subprime mortgage loans. Merrill Lynch was accused of devaluing worse than those already foreseen and feared for 2.5 billion dollars, reaching a total of 7.5 billion while Chinese Citicgroup worked for 6.5 billion writedown. The future seems to be still uncertain for Merrill Lynch as the same market conditions are uncertain and O'Neal for his part said that "we are working to heal our position."