The Wall Street Journal reports that Merrill Lynch may receive a $5bn cash infusion from Singapore's Temasek Holdings to shore up its capital. And The New York Post reports that David Trone, an analyst at Fox-Pitt Kelton, has said that the Wall Street firm could take an additional $8.4bn asset write-down hit in the fourth quarter, taking the 2007 asset write-down total to a massive $16.5bn. Credit Suisse analyst Susan Roth Kazke also said that she expected write-downs of up to $8bn and that 'we expect more senior management changes, some painful house-cleaning'.
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Bear Stearns came out Thursday and, as expected, posted the first quarterly loss in its history. The firm reported a net loss of $854m, after writing down $1.9bn in mortgage inventory assets net of hedges.
Here's an edited version of Morgan Stanley's fourth-quarter earnings press release, issued Wednesday.
The Wall Street Journal reports that Canadian Imperial Bank of Commerce (CIBC) is now expected to take at least $2bn in write-downs for US subprime lending-related assets in the first quarter of 2008, after Standard & Poor's slashed the rating on one of the bank's counterparties, ACA Capital Holdings, by 12 notches to junk status.
Here's the latest missive from our 'Highly Placed Professional'.
The Evening Standard reports that Morgan Stanley boss John Mack put back by a week the date his firm advised staff of their bonus numbers, after he learned what Goldman was paying its staff. The Wall Street firm is said to have told its staff Monday, after a 'last-minute scramble' to find more money for the bonus pot.
Breaking News - Just one month after Morgan Stanley announced that it was writing-down $3.7bn in subprime and related assets, the firm has shocked the market by posting it first quarterly loss ever - after taking a massive additional write-down of $5.7bn. Morgan Stanley's fourth-quarter loss from continuing operations was $3.59bn.
CNBC reports that Merrill Lynch may be forced to come out and confirm another large US subprime lending-related write-down ahead of its full year earnings report, due in mid-January. The news site quotes unnnamed 'senior people at the firm' who say that senior executives are lobbying to get the bad news out in the open as soon as possible. Rumours are flying that Merrill will announce additional write-downs of up to $6bn, taking this year's total to a massive $14bn.
Please do not read any further if you are easily offended. This joke is what it says on the tin.
Convicted UBS trader Kweku Adoboli asked a British appeals court to overturn his seven-year prison sentence for causing a $2.3bn loss through unauthorized trades.
When a 32-year-old dotcom multimillionaire known for his "goofball" approach to business is fired, the chances are he is not going to slip out the back door, hanging his head in shame.
Here's Fortune's current Top 10 and some other interesting rankings.