Friday, November 2, 2007
Merrill Lynch just can't stay off the front pages, and it's not good news. The Wall St. Journal reports that the SEC is investigating whether the company knew last summer that its losses with mortgage securities were bigger than it disclosed at the time. It is also looking into how Merrill Lynch valued its securities. Apparently, Merrill has been making deals with hedge funds in order to postpone losses. Enron all over again? WSJ, Deals With Hedge Funds May Be Helping Merrill Delay Mortgage Losses.