Merrill now in shorts' sights as Lehman crumbles

[jannyk]

Source: Reuters

NEW YORK (Reuters) - The crisis of confidence in Lehman Brothers (LEH.N: Quote, Profile, Research, Stock Buzz) has led to fallout throughout the financial sector -- especially for larger rival Merrill Lynch & Co Inc (MER.N: Quote, Profile, Research, Stock Buzz).

The problem for Merrill is that short-sellers regard it as the next weakest investment bank after the crumbling Lehman and the crumbled Bear Stearns, which was sold at a firesale price in March.

"People are saying, 'Who's next on the list?'" said Matt McCormick, portfolio manager and banking analyst at Bahl & Gaynor in Cincinnati....snip


....One hedge fund manager who is short Merrill said he sees these banks, which hold loans and deposits made through Merrill's network of financial brokers, needing more capital, which will have to be provided by the parent.

"Merrill's in a box, but people don't realize it," he said.

Read more: http://www.reuters.com/article/newsOne/idUSN1220665620080912

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Drip, drip, drip....splosh!.

[CountAllVotes]

1. my friend inherited a load of bucks

it was in Merrill Lynch and I told her to get it the hell out of there. Did she listen? No, she got greedy. They promised her a return of ~12% this year - guaranteed mind you. Damn liars!

SH*T!!!!

:kick:

[nolabels]

2. Well duh, they extend themselves out too far and get their arms chopped off

Sounds like the lights are starting to go out in the casino :shrug: