Merrill Lynch and Co. reported Tuesday a $15.84 billion loss — or $9.95 per share — in the fourth quarter of 2008, according to a report filed with the U.S. Securities and Exchange Commission. Bank of America Corp. (BAC), which acquired Merrill Lynch in early September, estimated in January that Merrill would lose $15.31 billion in the fourth quarter — $533 million less than the actual loss. Merrill Lynch lost a total of $27.61 billion, or a whopping $24.87 per share, over the course of 2008, chiefly due to large writedowns and investment losses on CDOs and other risky securities. The annual report said the recently acquired bank experienced material weaknesses related to a failure to properly test measurements used to value intercompany swaps, and a failure to properly account for some hedging positions, including a “single material hedge relationship” which began in the fourth quarter, according to a Reuter’s report. However, Merrill said it has corrected the problems and will look to eliminate those weaknesses this quarter. Write to Kelly Curran at [email protected]. Disclosure: The author held no relevant investment positions when this story was published. Indirect holdings may exist via mutual fund investments. HW reporters and writers follow a strict disclosure policy, the first in the mortgage trade.
Merrill Posts $15.84 Billion Q4 Loss
Most Popular Articles
Latest Articles
Have higher mortgage rates already reversed housing demand?
The strong economic data we’ve seen in the past several weeks underscore why the 10-year yield and mortgage rates rose last week.
-
How to get (or renew) your NMLS license in 2024
-
Anywhere’s Sherry Chris talks brand building, crisis management with the ‘Real Estate Insiders’
-
FHA commissioner, HUD counseling head on serving seniors with reverse mortgages
-
Shareholders sue eXp over alleged mishandling of sexual assault cases
-
Jobs report sends mortgage rates higher