Merrill Lynch Will Likely Take Up to $6.5 Bln Writedown
Merril Lynch will likely write down between $6 billion and $6.5 billion linked to several types of debt, senior company executives said, according to a report.
The debt includes loans tied to subprime mortgages, commercial real-estate, and other types, people at the firm said, according to CNBC.
Merrill will report its quarterly earnings on April 17.
The company also asked its trading desk to sell inventory to reduce the size of its debt and support its credit rating, the report stated.
Earlier today, Merrill Lynch CEO John Thain told reporters while visiting the firm's offices in Tokyo that the firm did not plan to raise additional capital but would continue to reduce its balance sheet.
The firm has already raised $12.8 billion in capital since the crisis began last summer. It has written down $24 billion in investments tied to the struggling U.S. mortgage market.
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