Friday, Oct 05, 2007
losses continue, and not their last?
BBC News: Merrill in $5.5bn sub-prime loss
Merrill Lynch has warned it will have to write down a $5.5bn (£2.7bn) loss for bad investments linked to defaulted US sub-prime mortgages. Merrill, the latest investment bank to reveal its exposure to the downturn in the industry, said it would post a third-quarter loss as a result.
Posted by happyrenter @ 05:50 PM (435 views) Add Comment
3 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. alan said...
It was interesting to read that ML thought the problems had all been ironed out with Sub-Prime 2 weeks back!
I fear there are more Sub-Prime skeletons to come out of the cupboard!
Defaults will hit a high next month because that is when the (teaser) rates jump from easily payable IRs (6%) to double (12%), in some cases. These rates are built into the contracts and often the sales people got bigger bonuses to sell this type of mortgage. Expect that to work through into repossessions in February and job losses by Easter.
Expect the Fed to cut rates too.
2. tyrellcorporation said...
Yeah but rate cuts are just filling the boots of city slickers, the rest of the economy is vanishing down a pooey hole!
3. harold said...
"Expect the Fed to cut rates too."
Where to? They're already pushing on a piece of string. Their room to stimulate by cutting is severely limited. Basically, it's depression time.