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Article: 3Q Earnings: Merrill Admits Errors in Managing Securities Risk.(Merrill Lynch & Co. )(Financial report)
- Article from:
- American Banker
- Article date:
- October 25, 2007
- Author:
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After disclosing Wednesday that it had taken the hardest hit of any investment bank from exposure to collateralized debt obligations, securitizations, and subprime mortgages, Merrill Lynch & Co. was buffeted by analysts who assailed the firm's risk management practices and its top executives for failing to anticipate the extent of its vulnerability.
"How could management put the company in a position to lose $10 billion?" wrote David Trone, an analyst at Fox-Pitt Kelton, in a research note after Merrill's third-quarter earnings call. "How could the company preannounce and then have such a dramatically different number?"
The company announced early this ...