Merrill hit with $1.96bn loss as bad debt mounts

While close to analyst expectations, the net loss is well down on the $2.1bn profit recorded in the same period last year. The latest write-down takes the Wall Street giant’s total bad debt to $24bn. "Despite this quarter's loss, Merrill Lynch's underlying businesses produced solid results in a difficult market environment," chairman and chief executive officer John Thain says. "The firm's $82bn excess liquidity pool has increased from year-end levels, and we remain well capitalised. "In addition, our global franchise is positioned strongly for the future, and we continue to invest in...