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Merrill Reports First Loss Since 2001 After $7.9 Billion Charge
- Thread starter ASusilovic
- Start date
Quote from THE-BEAKER:
you know the market is fucked up when a $7billion loss is treated as good news because it could have been $12 billion loss.
the us investment banks are bankrupt effectively.
their assets are worthless but some of them chose not to mark to market.
some of the others ones must be sitting on some monumental losses.
another slap in the face of common sense.
stocks will finish up today on the back of this.
The US Investment banks are bankrupt? Where are you getting this?
Most of the banks out there have solid balance sheets, and all of these reported losses are mark to market losses, meaning that until these banks are forced to liquidate these assets, or until they stop performing, they're just hypothetical.
Stocks won't finish up on this, as I think the equity markets are beginning to wake up to the notion that everything ain't peachy.
Quote from ASusilovic:
Merrill Lynch & Co. reported its first quarterly loss in six years after a larger-than-forecast $7.9 billion of writedowns for subprime mortgages and asset- backed bonds, the highest reported by any Wall Street firm.
The third-quarter loss of $2.24 billion, or $2.82 a share, compared with net income of $3.05 billion, or $3.17, a year earlier, the New York-based firm said in a statement distributed by Business Wire. The loss exceeded the 45-cent average estimate of 17 analysts surveyed by Bloomberg. Merrill said Oct. 5 that it would report a loss of as much as 50 cents a share.
Outsch !:eek:
As bad as it seems the stock is only down 5%
Indicates most bad news being prices in
I wouldn't recommend shorting this.
I wouldn't recommend shorting this.
If there is nothing fundamentally wrong with the economy, how in the hell did MER lose money?
MEr will do just fine
Quote from Ivanovich:
Is it also to prevent normal, healthy corrections in over-inflated bubble markets so that when they finally do correct, nothiing can save investors from the chaos and turmoil?
I'm not sure why you're trying to defend the Fed from it's irresponsible behavior, but let's not lose sight of the fact that the Fed is one of the many responsible parties here for various aspects (such as the destruction of the dollar's value) that should otherwise be corrected naturally.
Of course there have been made mistakes in the past ! But do you want to punish economy for FED´s irresponsible behaviour from the past by irresponsible behaviour in present time ?