Merrill announces 'dismal' results, write-downs

18 April 2008

Merrill Lynch announced new losses, job cuts and write-downs yesterday in its latest results declaration.

The bank has now written off an extra $9.7 billion according to the latest figures, on top of the $25 billion of write-downs announced since the start of the ongoing financial crisis.

Job cuts at Merrill for 2008 also now stand at 4,000 - including the extra 2,900 announced this week.

First-quarter losses of $1.96 billion and a 69 per cent plunge in year-on-year revenue were also admitted to by the bank, a result the New York Times termed "dismal".

Further bad news for Merrill has also come from Moody's - which signalled yesterday that it could reduce the bank's A1 long-term rating.

"[The] review is in response to continued deteriorating conditions in the mortgage market," Moody's said in a statement.

"Management at Merrill Lynch is focusing on the right issues for the rating - liquidity, capital and de-risking the balance sheet. However the mortgage market is not cooperating," senior vice-president at the ratings firm, Peter Nerby, added.

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development