January 11, 2008

FLASH: Merrill Lynch, on the verge of failure, admits to ANOTHER $15 billion in subprime poo


Its fun to see all the investment bank idiots admitting to their subprime losses - like Chinese water torture, a drop at a time.

Just wait until they start admitting to their Alt-A liar's loan exposure, their option-ARM exposure and god forbid their prime 30-year fixed exposure.

And it's also fun to see these strong and powerful American companies running around Asia and the Arab world begging for dollars.

Actually, that's not fun. That part is really kinda sick.

Giant Write-Down Is Seen for Merrill

Merrill Lynch is expected to suffer $15 billion in losses stemming from soured mortgage investments, almost double its original estimate, prompting the firm to raise additional capital from an outside investor.

Merrill, the nation’s largest brokerage firm, is expected to disclose the huge write-down when it reports earnings next week, according to people who have been briefed on its plans. The loss far exceeds the $12 billion hit many Wall Street analysts had forecast.

To shore up its deteriorating finances, Merrill is now in discussions with investors in the United States, Asia and the Middle East, including American private equity firms, to raise about $4 billion in the coming days, these people said.

Merrill is hardly alone in seeking capital from overseas. United States financial institutions have raised more than $29 billion from foreign governments and their related investment entities, according to the market research firm Dealogic.

14 comments:

eric in vegas said...

The write downs that these banks are going to take in the coming years will wipe out everything they earned during the boom days. Citi is next and they get to announce their 18 billion dollar write down and that they're firing 10% of their workers. They are so fucked when the time finally comes to mark to market these worthless loans and finally come clean that the trillions they lent in the past years (mortgage, heloc, auto, credit cards) is NEVER going to be paid back.

eric in vegas said...

Oh and another thing, these foreigners aren't investing in these companies, they're systematically buying them.

Anonymous said...

Couldn't happen to a better group of worthy, greedy and GUILTY scumbags.

I wish them all the misery in return that they have caused others with their behavior.

DIE U PIGS

decaffeinated said...

It's interesting to note that as the financial segment of the US economy begins to unravel at an ever faster pace, Dear Leader runs off on a MidEast trip. Maybe that's a good thing.

I do know that I'd pay good money to watch Paulson brief Skippy McDumbass.

Paulson: "Sir, please put down the Scotch bottle and listen to me. We have a serious problem unfolding in the last year of your term."

McDumbass (slurred): "Are we done yet?"

Anonymous said...

and American Express has been stiffed by it's own customers! Also, God bless us everyone. We are going to need it.

consultant said...

If this was 1929, we would have already collapsed. There are more mechanisms in place now, but that hasn't stopped people from acting incredibly stupid.

BoA is going to buy Countryf@ck?!

I guess they said, in for a penny, in for a pound. It may be the only way they can recoup the insane decision to invest $2 billion in Countrysh!t back in the summer.

Since they've become corporate terrorists too, they probable also thought, lets do this now before the next administration gets in.

Keith, nobody and I mean nobody is minding the store.

Anonymous said...

Hey Merrill Lynch, c'mon - there's gotta be at least ONE person in your organization reading this blog. Tell us - anon, of course - what's going on behind closed doors.

borkafatty said...

15 Billion digits ....0101010101001010101010101010101010

Thats all it is..a 15 billion dollar digit loss...so when does the real money kick in..oh that right we have no real money....

I tell you if i was a debt slave with C.Cards or a home that i was 95% upside down on and could not afford anyway....i would walk away from it all...People preach personal responsibility for personal actions...what about the actions of these big corps..what they are better than the average joe?..bullshit I say...walk away folks....walk away...and let us get this over with so we can move on.

Paul E. Math said...

So wait, our money supply is controlled by the federal reserve, right? And the federal reserve board is comprised of representatives from regional banks, right? And now we're watching some of the largest financial institutions in our country get bought by middle eastern interests, right?

Does anyone else see something wrong with this picture?

Edgar said...

The funny thing is they are begging money from the same people they've screwed over the years.

Watching Paulson go over there and repeatedly beg money from China = priceless.

Anonymous said...

Stan O'Neal should have kept his job as a sharecropper like his daddy. The guy was in way over his head.

Stuck in So Pa said...

borkafatty said...
15 Billion digits ....0101010101001010101010101010101010

Thats all it is..a 15 billion dollar digit loss...so when does the real money kick in..oh that right we have no real money....

I tell you if i was a debt slave with C.Cards or a home that i was 95% upside down on and could not afford anyway....i would walk away from it all...People preach personal responsibility for personal actions...what about the actions of these big corps..what they are better than the average joe?..bullshit I say...walk away folks....walk away...and let us get this over with so we can move on.
============================

OMG! That was great! As the old saying goes "If I knew then what I know now," I would be a $30,000 dollar trillionaire (screw millionaire,) and walk away laughing when it came time to pay up. My life would be no different than it is now.
Fiscal responsibility means you wind up with a credit score in the toilet (since paying off the balance every month makes you a "bad" customer,)so that's not a problem. I could have been living the good life for the last 5-7 years.

When all this sh#t unfolds, who is going to be left to send your payments to, anyway! The last bank left standing will be standing on a Mt Everest of toilet paper.

And who says that I'd HAVE to walk away. When a "Big Mac,fries,and a Coke" cost $5000 whats $15000/mo in mortgage and credit card payments?

Mail em' some burgers!

Anonymous said...

"Couldn't happen to a better group of worthy, greedy and GUILTY scumbags."

The problem is that by the time all is said and done the people who made all this mess will scurry away with pockets full of cash while the average worker and taxpayer is left holding the bag.

We really need to bring back mob justice and/or duels.

borkafatty said...

Yup I to missed the boat "Stuck"..just goes to show you a clean life is a boring life...but since i have no debt ...and well low FICO due to no debt i can not even qualify for a C.C ...so fuckem...let them eat dead crow..they, the banks are just lucky i don't qualify...cause i would run up masses and masses of debt i never plan to payback.