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Sunday, December 30, 2007

Report: Merrill Seeks More Money

by Calculated Risk on 12/30/2007 08:08:00 PM

From the Observer: Merrill seeks more funds to avoid crisis (hat tip AllenM)

John Thain, the new chief executive of Merrill Lynch, is this weekend in talks with Chinese and Middle Eastern sovereign wealth funds that could lead to the sale of another big stake in the US bank in a desperate bid to raise capital, according to sources in London and New York.
Sources close to Merrill Lynch say that Thain has cancelled New Year leave among his top lieutenants and that his team is working around the clock on various 'scenarios' that could be employed to save the bank if problems related to the credit crunch continue to worsen.
Fears are mounting that Merrill Lynch will be forced to write down between $10bn and $15bn worth of assets related to CDOs ... when it reports financial results next month.
Just a rumor at this point ...