Merrill Lynch to write down further $6-8 bln: report

April 15, 2008

TOKYO (Reuters) - Merrill Lynch <MER.N> will announce a further $6 billion to $8 billion of asset writedowns in its quarterly results this week, the Wall Street Journal reported on Wednesday, citing a person familiar with the matter.

The Journal said in its online edition that the writedowns would take the total since October to more than $30 billion and lead to a third straight quarterly net loss at Merrill, the longest such losing streak in its 94-year history.

Investors have been bracing for more bad news from big U.S. banks reporting their first-quarter results this week as the housing market collapse and credit market turmoil has taken a big toll on their balance sheets.

Merrill is also preparing a cost-saving plan that will include job cuts of 10 percent to 15 percent in some struggling business areas, such as bond financing, the Journal reported.

Currency traders in Asia said the article on Merrill caused a slight dip in the dollar against the yen but that the reaction was muted because investors had been expecting more such writedowns.

JPMorgan Chase <JPM.N>, which took over hard-hit investment bank Bear Stearns <BSC.N> last month, and Wells Fargo lt;WFC.N both report their quarterly results later in the day. Merrill issues its results on Thursday. Earlier in the week Wachovia WB.N, the No. 4 U.S. bank, posted a surprising first-quarter loss as losses from its mortgage portfolio worsened. It has also cut its dividend and raised $7 billion of capital. (Reporting by Eric Burroughs; Editing by Hugh Lawson)