October 06, 2007	Saturday	Ramazan 23, 1428

NEW YORK, Oct 5: Merrill Lynch & Co., Inc., a big Wall Street investment bank and brokerage, warned investors on Friday it will post a third quarter loss because of soured bets it made on the mortgage and debt markets.

The financial powerhouse’s top executive voiced disappointment as Merrill Lynch said it expects to reveal a loss of up to 50 cents a share when it releases its third quarter earnings roundup on October 24.

Merrill Lynch’s profit warning sees it join a growing list of well-known financial firms anticipating heavy losses tied to the downturn in the US housing market and mortgage-backed securities.

It flagged its expected loss four days after Citigroup Inc., America’s largest banking group by market value, warned its third quarter profit would likely fall by around 60 per cent due in part to ailing mortgage investments.

“While market conditions were extremely difficult and the degree of sustained dislocation unprecedented, we are disappointed in our performance,” Merrill Lynch’s chairman and chief executive Stan O’Neal said.—AFP