Merrill Lynch reported a net loss from continuing operations for the first quarter of 2008 of $1.97 billion and an overall net loss of $1.96 billion vs. net earnings of $2.16 billion for the year-ago quarter.
Revenues were $2.9 billion, down 69 percent from the prior-year period, mainly because of net write-downs totaling $1.5 billion related to U.S. ABS CDOs (asset-backed securities and collateralized debt obligations) and credit-valuation adjustments of negative $3 billion related to hedges with financial guarantors, the company says.
Merrill’s GPC FocusThe investment firm says its private client operations will continue to invest in:o A new online platform for clientso Upgrading of advisor work stations, ando Supporting global growth by adding local products and platforms outside the United States
Source: Merrill Lynch, April 2008
Despite this quarter’s loss, Merrill Lynch’s underlying businesses produced solid results in a difficult market environment,” says Chairman and CEO John A. Thain. “The firm’s $82 billion excess liquidity pool has increased from year-end levels, and we remain well capitalized. In addition, our global franchise is positioned strongly for the future, and we continue to invest in key growth areas and regions.”