Wednesday, April 16, 2008
According to the Wall St. Journal, Merrill Lynch will report $6-8 billion in new writedowns tomorrow, bringing the total to $30 billion since October. It will also report its third straight quarterly loss. Meanwhile, the SEC continues to look into whether investors should have been warned earlier about the extent of Merrill's risk in mortgage securities. A Page One story examines how risk controls at the firm were relaxed under former CEO Stanley O'Neal. WSJ, Merrill Upped Ante as Boom In Mortgage Bonds Fizzled.