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Text size [+][-]  Tuesday February 9 2010GLOBAL EDITION

Considered view
17 Jul 2008 22:04

Thainglorious

Context News

Merrill Lynch reported a second-quarter loss of $4.6bn after gross writedowns of $9.4bn on CDOs, mortgage assets and exposure to monoline insurers.

The firm also announced that it is selling its 20% stake in Bloomberg to Bloomberg Inc for $4.425bn, and has signed a non-binding letter of intent to sell a controlling interest in Financial Data Services Inc, a subsidiary that provides administrative functions for mutual funds, retail banking products and other services for its global wealth management unit. FDS has en enterprise value in excess of $3.5bn. Merrill will provide financing for both transactions.

 

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The mortgage mess wasn’t on his watch. But the Merrill boss boxed himself into a corner on asset sales, was Clintonesque on raising capital, and blew a hole in the firm's culture hiring Thomas Montag. Any future problems at the Thundering Herd fall squarely on Thain’s shoulders.

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