Tuesday, July 29, 2008

Merrill’s mortgage CDOs fell 78% from $30.6bn to $6.7bn!

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 (649 views)
Please complete the required fields.



Add a comment

  • 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

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>