Wednesday, October 31, 2007
Besides looking for a new CEO, Merrill Lynch needs to deal with the regulators. SEC enforcement reportedly is looking into the adequacy of Merrill's disclosures about its losses in the credit markets and how it values its holdings of CDOs and subprime mortgages. Merrill reported better-than-expected earnings for the second quarter in mid-July as the market's troubles were intensifying. Then on Oct. 5 it announced a projected $5 billion loss which turned out to be $8.4 billion by Oct. 24. A shareholders class action has already been filed.
Meanwhile, Stan O'Neal walks away with $161.5 million. He doesn't get a bonus for 2007. WSJ, Merrill's Job:Cleaning Up And Moving On;