American bank Merrill Lynch has announced a net loss of £3.9 billion for 2007 as the effects of the sub-prime crisis continue to shine through. With a sizeable exposure to the sub-prime market, as evidenced by a £7 billion write-down in investments in the sector, it is understandable that the bank failed to perform last year.
2006 had seen the bank make a £3.8 billion profit, and had enjoyed a good start to 2007. However, the final three months of 2007 saw the bank make a loss of almost £5 billion. The bank isn’t alone in its plight, with Citigroup, UBS, Morgan Stanley and HSBC amongst the other banks to have been hit particularly hard by the credit crisis.
Merrill has, however, announced that it has received fresh backing of over £3 billion from the Kuwait Investment Authority, the Korean Investment Corporation and other investors .
Merrill Lynch Announces GBP4 Billion Loss
Merrill Lynch Announces GBP4 Billion Loss
Wed, 30 Jan 2008
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