Goldman Sachs ups Merrill Lynch & Citigroup Write Downs
Horses call each other Nags... or Pots Call Kettles Black.
Merrill Lynch ($2 billion) and Citigroup ($12 billion) had their Q1 earnings estimates cut by Goldman Sachs...
which said the two banks may post $14 billion in writedowns on assets linked to CDO collateralized debt obligations.
Goldman analysts: "If our forecasts are correct, it is likely that these firms may need to raise additional capital in coming months."
adding that the firms could sell shares, assets or cut dividends. Citigroup and Merrill have already tapped investors for cash.
In January they said they would receive $14.5 billion and $6.6 billion from investors respectively,
after getting $7.5 billion and $5.6 billion cash infusions in November and December.
Hattip to Bloomberg.
Merrill Lynch ($2 billion) and Citigroup ($12 billion) had their Q1 earnings estimates cut by Goldman Sachs...
which said the two banks may post $14 billion in writedowns on assets linked to CDO collateralized debt obligations.
Goldman analysts: "If our forecasts are correct, it is likely that these firms may need to raise additional capital in coming months."
adding that the firms could sell shares, assets or cut dividends. Citigroup and Merrill have already tapped investors for cash.
In January they said they would receive $14.5 billion and $6.6 billion from investors respectively,
after getting $7.5 billion and $5.6 billion cash infusions in November and December.
Hattip to Bloomberg.
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