Recessionary times??

[Willi]

No man,

You had a panic run on a northern UK Bank (Northern Rock) a few weeks back. Credit Suisse and UBS had big sub-prime losses as well.

I want to hear from the derivatives King JP Morgan...who may have the most exposure of all.

[Bricktop]

I am talking about the possibility of a global recession

Not necessarily. I think this statement sums it up best: "It speaks very poorly to Merrill's risk management practices."

[Willi]

I am talking about the possibility of a global recession...and that might be the good news, as a global financial MELTDOWN is a possibility if this is widesp[read.

[Jawge]

it's not if but when.

[Bricktop]

Merrill Lynch posts $2.3bn loss
Merrill Lynch has reported $7.9bn (£3.85bn) in write-downs for the third financial quarter of the year leading to its first loss since 2001.

Now is this a loss for a third consecutive quarter or a 3rd quarter loss? If it is the latter it does not meet the definiton of a recession.

[Willi]

Merrill Lynch posts $2.3bn loss
Merrill Lynch has reported $7.9bn (£3.85bn) in write-downs for the third financial quarter of the year leading to its first loss since 2001.

The losses were caused by exposure to bad mortgage-related debt, such as that in the crisis hit US sub-prime sector.
The brokerage giant reported a net loss of $2.3bn from continuing operations, against a $3bn profit a year ago.
The firm is the latest to reveal its exposure to bad debt, with a write-down much larger than initially forecast.
'Difficult markets'
Merrill's admission follows similar warnings from Citigroup, Credit Suisse and UBS as the extent of the crisis in the US sub-prime loans sector becomes known.

This is a bloodbath for certain
Bill Fitzpatrick, Johnson Family Funds

"In light of difficult credit markets and additional analysis by management during our quarter-end closing process, we re-examined our remaining CDO [collateralised debt obligations] positions with more conservative assumptions," said Merrill chief executive Stan O'Neal.
"The result is a larger write-down of these assets than initially anticipated."
Merrill's revenues for the three months until the end of September plummited 94% to $577m from 9.83bn a year earlier.
"This is a bloodbath for certain," said Bill Fitzpatrick, analyst at Johnson Family Funds.
"It speaks very poorly to Merrill's risk management practices."



Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/1/h...ss/7059997.stm

Published: 2007/10/24 12:26:59 GMT

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