Wall Street banking giant Merrill-Lynch has unveiled a huge loss for 2007, crippled by exposure to risky investments.
Earlier this week, Citigroup and JP-Morgan also announced write-downs because of their exposure to the crisis in the sub-prime loan sector, which focused on consumers with poor or non-existent credit histories.
Lifeline
BBC Business Editor Robert Peston said that Merrill has only survived thanks to lifesaving capital from the cash-rich economies of Asia and the Middle East.
Main Subprime Losses- Merrill Lynch: $22.1bn
- Citigroup: $18bn
- UBS: $13.5bn
- Morgan Stanley $9.4bn
- HSBC: $3.4bn
- Bear Stearns: $3.2bn
- Deutsche Bank: $3.2bn
- Bank of America: $3bn
- Barclays: $2.6bn
- Royal Bank of Scotland: $2.6bn
- Freddie Mac: $2bn
- JP Morgan Chase: $3.2bn
- Credit Suisse: $1bn
- Wachovia: $1.1bn
- IKB: $2.6bn
- Paribas: $197m
Source: Company Reports
Merrill Lynch said on Tuesday it had won fresh backing totalling $6.6bn from the Kuwait Investment Authority, the Korean Investment Corporation. Rivals Citigroup, UBS and Morgan-Stanley have raised capital from similar sources.
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