Merrill Lynch reports $5.6 billion losses on FICC business

The bank revealed write-downs of $6.9 billion across collateralised debt obligations (CDOs) and $1 billion write-downs across US subprime mortgages, which are much greater than the $4.5 billion total write-down Merrill Lynch disclosed in a pre-earnings statement on October 5.

"Mortgage and leveraged finance-related write-downs in our FICC business depressed our financial performance for the quarter. In light of difficult credit markets and additional analysis by management during our quarter-end closing process, we re-examined our remaining CDO positions with more conservative assumptions. The result is a larger write-down of these assets than initially anticipated," said Stan O'Neal, chairman and chief executive officer of Merrill Lynch in New York.

See also: Merrill writedowns throw light on risk management

  • LinkedIn  
  • Save this article
  • Print this page  

You need to sign in to use this feature. If you don’t have a 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: