{"id":4511,"date":"2007-10-11T16:17:45","date_gmt":"2007-10-11T16:17:45","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2007\/10\/merrill_lynch_morgan_stanley_a_1"},"modified":"2021-09-20T15:41:43","modified_gmt":"2021-09-20T20:41:43","slug":"merrill-lynch-morgan-stanley-a-1","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/merrill-lynch-morgan-stanley-a-1\/","title":{"rendered":"Merrill Lynch, Morgan Stanley and Bear Stearns Suffer Losses as Ratings Agencies Are Grilled over Sub-prime&#8217;s"},"content":{"rendered":"<p>\t\t\t\tMerrill Lynch will soon report third quarter earnings which analysts have revised downward.  An analyst at competitor Goldman Sachs says that Merrill&#8217;s earnings for the third quarter will be about $1.80 per share, down from $1.95 and lowered Merrill&#8217;s stock price target to $94 from $108. The Goldman analyst predicted that Merrill will have $4 billion in write-downs, primarily from the fixed income division, resulting in a net loss of $1.5 billion for the quarter.<\/p>\n<p>Other analysts&#8217; expectations were even even lower:  Fox Pitt Kelton&#8217;s analyst lowered earnings per share estimate for Merrill to $1.20, from a previous estimate of $1.91, &#8220;while noting that forecasting confidence is low in periods such as these.&#8221;  He also expected the firm to experience $3.5 billion &#8220;in gross negative marks and realized losses&#8221; on leveraged loans, CDOs, and mortgages resulting in $2.2 billion in net losses and attributes the more positive net loss estimate to &#8220;$700 million in hedging gains; $500 million in loan fees; and $100 million in gains on liability marks.&#8221;<\/p>\n<p>Morgan Stanley reported last week that it suffered a 17 percent drop in profit compared to the third quarter last year, earning $1.44, about ten cents below analysts&#8217; estimates, with loan losses of $1 billion the culprit.  <\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/merrill-lynch-morgan-stanley-a-1\/\"  title=\"Continue Reading Merrill Lynch, Morgan Stanley and Bear Stearns Suffer Losses as Ratings Agencies Are Grilled over Sub-prime&#8217;s\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Merrill Lynch will soon report third quarter earnings which analysts have revised downward. An analyst at competitor Goldman Sachs says that Merrill&#8217;s earnings for the third quarter will be about $1.80 per share, down from $1.95 and lowered Merrill&#8217;s stock price target to $94 from $108. The Goldman analyst predicted that Merrill will have $4 [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3807,3845,3800,3787],"tags":[],"class_list":["post-4511","post","type-post","status-publish","format-standard","hentry","category-bear-stearns","category-credit-rating-agencies","category-merrill-lynch","category-morgan-stanley"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Merrill Lynch, Morgan Stanley and Bear Stearns Suffer Losses as Ratings Agencies Are Grilled over Sub-prime&#039;s &#8212; Investor Lawyers Blog &#8212; October 11, 2007<\/title>\n<meta name=\"description\" content=\"Merrill Lynch will soon report third quarter earnings which analysts have revised downward. An analyst at competitor Goldman Sachs says that Merrill&#039;s &#8212; October 11, 2007\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/merrill-lynch-morgan-stanley-a-1\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Merrill Lynch, Morgan Stanley and Bear Stearns Suffer Losses as Ratings Agencies Are Grilled over Sub-prime&#039;s &#8212; Investor Lawyers Blog &#8212; October 11, 2007\" \/>\n<meta name=\"twitter:description\" content=\"Merrill Lynch will soon report third quarter earnings which analysts have revised downward. An analyst at competitor Goldman Sachs says that Merrill&#039;s &#8212; October 11, 2007\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Merrill Lynch, Morgan Stanley and Bear Stearns Suffer Losses as Ratings Agencies Are Grilled over Sub-prime's &#8212; Investor Lawyers Blog &#8212; October 11, 2007","description":"Merrill Lynch will soon report third quarter earnings which analysts have revised downward. 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An analyst at competitor Goldman Sachs says that Merrill's &#8212; October 11, 2007","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/merrill-lynch-morgan-stanley-a-1\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/merrill-lynch-morgan-stanley-a-1\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"Merrill Lynch, Morgan Stanley and Bear Stearns Suffer Losses as Ratings Agencies Are Grilled over Sub-prime&#8217;s","datePublished":"2007-10-11T16:17:45+00:00","dateModified":"2021-09-20T20:41:43+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/merrill-lynch-morgan-stanley-a-1\/"},"wordCount":438,"articleSection":["Bear Stearns","Credit Rating Agencies","Merrill Lynch","Morgan Stanley"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/merrill-lynch-morgan-stanley-a-1\/","url":"https:\/\/www.investorlawyers.com\/blog\/merrill-lynch-morgan-stanley-a-1\/","name":"Merrill Lynch, Morgan Stanley and Bear Stearns Suffer Losses as Ratings Agencies Are Grilled over Sub-prime's &#8212; Investor Lawyers Blog &#8212; October 11, 2007","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#website"},"datePublished":"2007-10-11T16:17:45+00:00","dateModified":"2021-09-20T20:41:43+00:00","author":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"description":"Merrill Lynch will soon report third quarter earnings which analysts have revised downward. 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