Merrill Lynch & Co. may take additional writedowns of up to $15 billion on its collateralized debt obligations and subprime investments when it announces earnings this week, according to various analyst reports. Merrill, which is slated to announce earnings Jan. 17, would not comment on the reports. (In the third quarter, it took a $7.9 billion hit on CDOs and subprime assets.) According to a note put out by Sandler O'Neill, many "wild cards" exist for Merrill. "Estimating CDO/subprime writedowns is quite subjective given the range of marks we have seen from peers," said Sandler. "Our current estimate of $10 billion represents an estimated markdown to $0.40 on the dollar from [Merrill's] starting exposure levels. While this markdown is arguably quite aggressive, certain peers have been even more aggressive in putting these issues behind them. For example, we estimate that Morgan Stanley marked its exposure in the range of $0.25 on the dollar." Sandler said if Merrill takes a $15 billion charge in the fourth quarter, "this would represent a net writedown to approximately $0.22 on the dollar."
-
House Republicans overcame internal divisions to narrowly pass President Trump's tax and spending package Thursday afternoon. The measure would cut the Consumer Financial Protection Bureau's funding level, among other provisions.
6h ago -
A labor shortage is costing the market tens of thousands of new homes per year, and tariff uncertainty is adding thousands of dollars in expenses per unit.
6h ago -
The pace of revenue growth slowed toward the end of 2024, with the trend continuing into the first three months of this year, NAHB reported.
6h ago -
Capital One closed the deal to buy the credit card provider in May and as part of the review process, decided to exit its home equity lending business.
7h ago -
The 10 basis point decline in the 30-year fixed mortgage was the most since March and the first time rates are below 6.7% since April, Freddie Mac said.
8h ago -
The firm, now going by Fairway Home Mortgage, said the change is a representation of plans to create a "connected ecosystem."
8h ago