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Text size [+][-]  Sunday March 14 2010GLOBAL EDITION

Considered view
17 Apr 2008 18:22

Stuff the cushion

Context News

Merrill Lynch reported a loss in the first quarter of $1.97bn. The investment bank wrote down $1.5bn on its ABS CDOs, $3bn on hedges with financial guarantors, $900m on leveraged loans and $800m on mortgages. The firm benefited from a $2.1bn gain linked to the drop in the value of its own debt.

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Will John Thain need to raise more capital for Merrill Lynch? To vote, click here.

Granted, the Merrill Lynch boss got more than he needed last time he went cap in hand, and probably has enough to withstand another $2bn or $3bn of losses. But the game now is to have a surfeit of capital. Thain might even be able to achieve that without diluting shareholders.

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More stories by:  Antony Currie






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