Continued "challenging" mortgage-related credit market conditions have caused Merrill Lynch to make "fair value adjustments" to exposed securities and businesses that it says will affect its third-quarter results.Merrill disclosed the concern in a Sept. 14 Securities and Exchange Commission filing, which it says it made "in anticipation of the closing" of its acquisition of First Republic Bank, set for Sept. 21. The company also reiterated past statements in which it noted that it is a "major player" in the areas exposed to the risk, namely the "subprime mortgage market, including certain collateralized debt obligations (CDOs), as well as other structured credit products and components of the leveraged finance origination market." Merrill Lynch can be found online at http://www.merrilllynch.com.

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