Staggering losses at Merrill Lynch; $15.3B Lost in Q4

Merrill Lynch posted a massive $15.3B loss for the 4th quarter of ’08 due to huge write-downs of mortgage related debt.
The brokerage firm also warned the SEC that it still has more than $10B in exposure to sub-prime mortgage securities and more than $6B in exposure to other residential and commercial mortgage debt.

But what’s really scary is the $37.5B worth of risk they hold in “credit default swaps”. Credit default swaps are contracts that make the issuer liable if certain bonds they cover go bad. Merrill covers a-lot of bonds. If thing get worse in general and bond defaults go up Merrill will be in real trouble and will drag Bank of America down with it.

MasterPlan Capital LLC offers private and institutionally funded commercial mortgage loans starting at $1MM.
Our 1 page, on-line commercial mortgage application is simple to complete and borrowers get a response the very next business day.


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