This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7193915.stm
The article has changed 7 times. There is an RSS feed of changes available.
| Version 2 | Version 3 |
|---|---|
| Merrill Lynch posts $7.8bn loss | Merrill Lynch posts $7.8bn loss |
| (10 minutes later) | |
| Wall Street banking giant Merrill Lynch has reported a net loss for 2007 after getting caught up in problems stemming from a slump in the US housing market. | Wall Street banking giant Merrill Lynch has reported a net loss for 2007 after getting caught up in problems stemming from a slump in the US housing market. |
| The company said it had made a net loss of $7.8bn (£3.9bn) in the 12 months to the end of December. | The company said it had made a net loss of $7.8bn (£3.9bn) in the 12 months to the end of December. |
| It is the latest US and European bank to reveal losses related to investments linked to the US mortgage market. | It is the latest US and European bank to reveal losses related to investments linked to the US mortgage market. |
| Included in those results is a massive $14.1bn write-down on investments related to subprime mortgages. | |
| MAIN SUB-PRIME LOSSES SO FAR Merrill Lynch: $22.1bnCitigroup: $18bn UBS: $13.5bn Morgan Stanley $9.4bn HSBC: $3.4bnBear Stearns: $3.2bn Deutsche Bank: $3.2bn Bank of America: $3bnBarclays: $2.6bn Royal Bank of Scotland: $2.6bn Freddie Mac: $2bnJP Morgan Chase: $1.3bn Credit Suisse: $1bn Wachovia: $1.1bn IKB: $2.6bn Paribas: $439mSource: Company reports class="" href="/1/hi/business/7096845.stm">Timeline: How the sub-prime crisis unfolded | |
| It is the company's second quarterly loss in a row. | |
| The previous chief executive, Stan O'Neal, stepped down in October because of the bank's poor performance. | |
| New boss John Thain said: "While the firm's performance for the year is clearly unacceptable, over the last few weeks we have substantially strengthened the firm's liquidity and balance sheet." | New boss John Thain said: "While the firm's performance for the year is clearly unacceptable, over the last few weeks we have substantially strengthened the firm's liquidity and balance sheet." |
| Earlier this week, Citigroup and JP Morgan also announced write-downs because of their exposure to the sub-prime loan sector. | Earlier this week, Citigroup and JP Morgan also announced write-downs because of their exposure to the sub-prime loan sector. |
| JP Morgan Chase said its earnings for the last three months of 2007 fell 34%. Net income was $2.97bn (£1.5bn) in the quarter to the end of December, down from $4.53bn a year earlier. | |
| On Tuesday, Citigroup reported a $9.83bn net loss for the last three months of 2007 after having to cut the value of its investments by $18.1bn. |