Tuesday, April 1, 2008
can bob the builder fix it?
Today the magic is gone, baby, gone. Since last year's historic highs, share prices at the independent securities firms have dropped an average of 42% - and that's excluding the wipeout at Bear Stearns (BSC, Fortune 500). Since mid-2007, Bear, Merrill Lynch (MER, Fortune 500), and Morgan Stanley (MS, Fortune 500) have taken more than $40 billion in pretax write-downs on their investment portfolios. And given the collapse in the mortgage securities they now can't sell, the big write-downs will keep coming.