Write-downs worse than expected

The fallout from the credit crisis continued in October, with several US investment banks reporting unexpectedly large write-downs that raised doubts about the competence of their risk management functions.

On October 24, Merrill Lynch reported a write-down of $6.9 billion across collateralised debt obligations (CDOs) and a $1 billion write-down across US subprime mortgages, well above the $4.5 billion total write-down it disclosed in a pre-earnings statement on October 5.

"We re-examined our

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: