Merrill Posts a Loss and Plans to Cut 2,900 More Jobs

[Omaha Steve]

Source: NY Times

By LOUISE STORY

Merrill Lynch & Company, the investment bank, posted a loss on Thursday and announced that it would cut about 4,000 jobs by the end of the year.

The 4,000 layoffs include 1,100 jobs — mostly in mortgage-related businesses — that have already been cut this year.

The bank reported worse-than-expected earnings for the first quarter, including $6.5 billion in write-downs and adjustments to assets in its mortgage, leveraged finance and other assets. The write-downs bring Merrill’s total in the last three quarters to more than $30 billion.


Daniel Acker/Bloomberg News

The investment bank's chief, John A. Thain, says Merrill is still on solid financial ground, despite its setbacks


Merrill said in its earnings release that it had lost $1.96 billion or $2.19 a share, after its write-downs, in the first three months, down from a profit of $2.106 billion or $2.26 a share in the same period a year ago.

Read more: http://www.nytimes.com/2008/04/17/business/17cnd-merrill.html?em&ex=1208577600&en=d1c338de813b74cb&ei=5087%0A

[Dr.Phool]

1. Don't worry.

Bernanke and Poulson will give you a whole bunch of taxpayer money, and everything will be all right again.