Could Merrill Lynch (MER) post worse numbers in the fourth quarter than it had in the third?
Goldman Sachs thinks so. The investment bank says MER could have to write down another $4.5 billion in the current quarter. That is probably a best case based on new housing numbers.
Reuters quotes the research report as saying "Merrill Lynch’s remaining exposure to collateralized debt obligations and subprime mortgages stands at $20.9 billion, but the market for those securities continues to deteriorate."
Goldman is being kind.
Douglas A. McIntyre