Thursday, October 25, 2007
The actual loss reported by Merrill Lynch yesterday was $8.4 billion, up from the expected $5 billion figure of two weeks ago and up from the $7 billion figure that was floated early yesterday morning. Merrill Lynch gets the dubious distinction of the largest loss ever on Wall St., surpassing the $6 billion loss by hedge fund Amaranth in 2006. In a telephone call with analysts, CEO Stanley O'Neal concedes that "some mistakes were made." Everyone else is wondering how the firm's exposure to risky mortgages got so out of hand and whether O'Neal will hold onto the CEO spot. WSJ, Merrill Takes $8.4 Billion Credit Hit.