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| Write-downs add to Merrill woes | Write-downs add to Merrill woes |
| (about 3 hours later) | |
| Merrill Lynch has reported heavy losses from the first three months of 2008, after more write-downs linked to the embattled credit markets. | Merrill Lynch has reported heavy losses from the first three months of 2008, after more write-downs linked to the embattled credit markets. |
| The firm said it lost $1.96bn (£1bn) compared with a profit of $2.1bn in the same period a year earlier - broadly in line with what analysts had expected. | The firm said it lost $1.96bn (£1bn) compared with a profit of $2.1bn in the same period a year earlier - broadly in line with what analysts had expected. |
| And it unveiled plans to cut about 4,000 jobs worldwide. | And it unveiled plans to cut about 4,000 jobs worldwide. |
| The results included about $4.5bn of write-downs for subprime mortgages and other risky assets. | The results included about $4.5bn of write-downs for subprime mortgages and other risky assets. |
| Merrill Lynch had already recorded in excess of $24bn of write-downs in previous quarters. | Merrill Lynch had already recorded in excess of $24bn of write-downs in previous quarters. |
| 'Poor management' | 'Poor management' |
| Chief executive John Thain said that the firm remained "well-capitalised" and that there were no plans to raise more capital. | Chief executive John Thain said that the firm remained "well-capitalised" and that there were no plans to raise more capital. |
| The job cuts make up about 10% of staff, excluding financial advisers and investment associates, and will save about $800m a year, Merrill said. | |
| Analysts have blamed poor risk management for Merrill's over-exposure to bad sub-prime mortgage debt. | Analysts have blamed poor risk management for Merrill's over-exposure to bad sub-prime mortgage debt. |
| However most of the main US banks have also had to unveil substantial losses linked to sub-prime investments of their own. | However most of the main US banks have also had to unveil substantial losses linked to sub-prime investments of their own. |
| The knock-on effect has been the global credit squeeze, as banks worldwide have been much less willing or able to lend money until the full extent of sub-prime losses is known. | The knock-on effect has been the global credit squeeze, as banks worldwide have been much less willing or able to lend money until the full extent of sub-prime losses is known. |
| Earlier this week JP Morgan Chase boosted markets, by revealing no major new woes. | Earlier this week JP Morgan Chase boosted markets, by revealing no major new woes. |