Merrill CEO denies the need for further capital

10 March 2008

The chief executive officer (CEO) of Merrill Lynch has said that the company does not need to return to the market to secure further capital despite ongoing turbulence in the credit markets, it has been reported.

Such turbulence had previously resulted in the firm being forced to raise nearly $13 billion, Reuters reports.

John Thain spoke to Le Figaro in France at the weekend, telling the newspaper that while the credit crises was not yet over, it had raised sufficient funds in its previous return to the market.

"We lost $8.6 billion last year," he said.

"But in parallel we raised $12.8 billion in under two months, or more than the losses we suffered. That is why today I can say that we will not need additional funds."

He added that the credit crisis, which has spread from subprime mortgages to auto credits, commercial loans and municipal loans is continuing to spread, with the problem of defaults set to rise.

Last week, Merrill Lynch announced that it would discontinue mortgage orientation at its First Franklin subsidiary and assess the sale of its mortgage loan servicing unit Home Loan Services.

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