Merrill Lynch overstates $43bn in derivatives cashflow

A bookkeeping mistake led Merrill Lynch to overestimate cashflow from its derivatives business by $43.1 billion over the past three years, the bank has revealed.

In a filing with the Securities and Exchange Commission, Merrill Lynch said it had been overstating cashflows associated with its derivatives business since 2005.

Although it plans to restate its accounts, the mistakes will have no effect on revenues, profits or capital levels as the mistakes in cash received and cash used are equal and o

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