Tuesday, July 29, 2008

Chronicles Of Depression 2.0: #170

Merrill sets $5.7 billion write-down, to sell stock
NEW YORK (Reuters) - Merrill Lynch & Co said on Monday it will take a $5.7 billion third-quarter writedown as it unloads huge amounts of risky debt, and raise $8.5 billion by selling new stock.

The Wall Street investment bank and brokerage announced its plans less than two weeks after posting a $4.9 billion second- quarter loss, hurt by more than $9 billion of write-downs.

Merrill said its stock sale includes $3.4 billion to Singapore's state-run Temasek Holdings Pte Ltd TEM.UL, one of its largest investors, and may grow to $9.8 billion to meet demand. Management also plans to buy 750,000 shares, it said.

Monday's write-down and plans to raise capital may raise further questions about Chief Executive John Thain's ability to turn around Merrill. The company has lost $19.2 billion in the last year and suffered more than $40 billion of write-downs from subprime mortgages and other risky debt.

Emphasis added by me.

This is just too rich not to quote:
"Are things that much worse than we were led to believe?" said James Ellman, president of Seacliff Capital in San Francisco. "If people were going to believe Thain when he said Merrill raised more capital than it needed to and had taken conservative marks on its securities book, I'm not sure they're going to believe him tomorrow morning."

Emphasis added by me.

Hello, McFly! Duuhhhhh, yes!

Lenders including Merrill, Citigroup Inc and UBS AG have announced more than $400 billion in write-downs and credit losses since the global credit crisis began a year ago.

Emphasis added by me.

The key word there is "announced." What metastisizing fatal financial tumors haven't they yet pulled out to wave in front of the world to beg foreign suckers international moneymen for sell-out bailouts? Regular readers will recall jaw-dropping trillion-dollar-plus totals here and here and here and here and here and here.

If we knew the amount of sweating and sleepless nights and irregular bowel movements taking place among these top-level sociopathic bastards as they try to hold together the center of the corrupt machine, we'd all be sweating, sleepless, and having liquid shits too.

Citizens, go back to sleep.

Where is your money today?

Educate yourself!

Previously here:

Chronicles Of Depression 2.0: #161

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