Merrill Lynch Facing Tough Times

In the recent world of write offs and huge company losses two business giants are saying goodbye. Merrill Lynch and Bloomberg, companies that are worth more than billiions, will no longer be connected as far as stocks are concerned. Merril Lynch has decided to sell its 20 percent worth of stocks in Bloomberg back to the company.

With their relationship first existing in 1985 where Merrill Lynch brought 0 percent of the company to solidify their relationship now is totally nonexistent. First signs existed earlier in July when the company sold approximately 30 percent of the Bloomberg holdings to Bloomberg itself but still stated that they will have a business partnership.

Downsizing 101
With many companies across the board feeling some setbacks due to our countries economic situation, Merrill Lynch is no different. Recent reports have stated that the company itself has feel $4.6 billion dollars behind profit within the second quarter. This was pretty much due to the fact that the mortgage industry has been going through a heavy recession. The loss in $4.6 billion dollars is in effect related to $9.4 billion dollars of write-offs the company has made due to mortgage holdings, and credit related instruments.

In a recent conference call, chief executive John Thain stated that despite the company going through some tough times within the credit and mortgage industries that its main business was holding up and still profitable. He went on to discuss the fact that because of the current situations within certain markets, that the company was trying to clean house and reduce the companies risky assets.

Who is Merrill Lynch?
Merrill Lynch whose firms headquarters is located in New York City is mainly an investment company that provides many services related to wealth management, asset management, insurance, and banking.

The company itself was founded on January 6, 1914 but wasnt until 1915 that the company became officially known as Merrill, Lynch

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