The subprime crisis continues to deepen as Morgan Stanley and Merrill Lynch revealed further damage. Morgan Stanley announced in November that it lost $3.7 billion on exposure to CDOs of ABS based on US subprime mortgages, and on the mortgages themselves, in September and October alone. With a month to go until the end of its financial year, it has $2.7 billion net losses on subprime exposure.
Meanwhile, Merrill Lynch announced in its quarterly report that its exposure to subprime markets was hig
The week on Risk.net, July 7-13, 2018Receive this by email