Tuesday, Jul 29, 2008
Merrill's mortgage CDOs fell 78% from $30.6bn to $6.7bn!
Times: Merrill Lynch forced to take emergency action ahead of writedown
Another day, another bank, another billion: "Merrill Lynch sought to bolster its balance sheet and reduce its risk last night as it announced moves to raise $8.5 billion and the sale of $11.1 billion worth of high-risk mortgage-backed securities. The group said it would record a $4.4 billion writedown in its third-quarter from the sale of the CDOs. Merrill has been particularly hard hit by the US housing crisis. Merrill Lynch acquired the CDOs that it sold yesterday for $30.6 billion. By the end of Q2 this year they had declined in value to an estimated $11.1 billion and Merrill agreed yesterday to sell them to Lone Star, the private equity fund, for $6.7 billion."
Posted by drewster @ 01:24 AM (238 views) Add Comment
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