Friday, November 2, 2007
Merrill Lynch issued a denial in response to today's Wall St. Journal article alleging that the firm concealed losses in transactions with hedge funds:
This morning, an article in The Wall Street Journal about Merrill Lynch & Co., Inc., (NYSE: MER), relying on unidentified sources, speculated about inappropriate transactions that "may have been designed" to avoid write-downs that "might have been" required earlier in the year. The story is nonspecific and relies on unidentified sources. We have no reason to believe that any such inappropriate transactions occurred. Such transactions would clearly violate Merrill Lynch policy.
On another front, the WSJ reports that Citigroup has called an emergency board meeting for this weekend, possibly to discuss further write-downs. WSJ, Citi to Hold Emergency Board Meeting.