Merrill Lynch & Co Inc reported about $16 billion in mortgage-related write-downs and adjustments on Thursday in the worst quarter of the company's history.
Shares of the world's largest brokerage fell more than 8 percent as investors worried about more write-downs and exposure to capital-strapped bond insurers.
The stock's 48 percent decline over the past year has slashed nearly $42 billion from Merrill's peak market capitalization of $84.7 billion in late January 2007.
The start of a booming year for investment banking fees and big bets on subprime mortgages ended in dismal fashion. Merrill's fourth-quarter net loss was $9.8 billion, or $12.01 a share, compared with year-earlier profit of $2.3 billion, or $2.41 a share.
No comments:
Post a Comment