Banking, finance, and taxes
Merrill Lynch (MER) Caves In On Auction Rates
Published:
Last Updated:
Merrill Lynch (MER), pole-axed by the Citigroup (C) decision to buy back all of the auction-rate securities it has sold to individual investors, buckled and said it will purchase up to $12 billion of the paper on the same basis.
MER said that effective January 15, 2009, and through January 15, 2010, it will offer to buy at par auction rate securities sold by it to its retail clients.
The news further cripple’s Merrill’s balance sheet and reputation. The firm did say it does not expect its purchase of auction rate securities in 2009 through 2010 to have a materially adverse impact on its capital ratios, liquidity, or consolidated financial performance.
Based on management’s forecasts over the last six months, Wall St. will take that with a grain of salt.
Douglas A. McIntyre
After two decades of reviewing financial products I haven’t seen anything like this. Credit card companies are at war, handing out free rewards and benefits to win the best customers.
A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges.
Our top pick today pays up to 5% cash back, a $200 bonus on top, and $0 annual fee. Click here to apply before they stop offering rewards this generous.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.