Merrill Lynch - Third Quarter - 2007 - Loss

October 05, 2007

Merrill Lynch & Co., Inc. today announced that challenging credit market conditions will have an adverse impact on its net earnings for the third quarter. The company expects to report a net loss per diluted share of up to $0.50, resulting from significant negative mark-to-market adjustments to its positions in two specific asset classes: collateralized debt obligations (CDOs) and sub-prime mortgages; and leveraged finance commitments. These mark-to-market adjustments primarily affect Merrill Lynch's Fixed Income, Currencies & Commodities (FICC) business.

Source: http://online.wsj.com/public/article/SB119159015101350111.html

It’s a result of a $5.5 billion write-down on collateralized debt obligations, subprime mortgages and leveraged finance commitments. Through the first half of the year, Merrill was the top underwriter of CDOs with proceeds of $34.18 billion in 2007 for a market share of 13.3%, according to Thomson. By the end of the third quarter, it had dropped to second place, behind Citi, with a 10.6% share and $37.98 billion underwritten.

The loss prompted the firm to oust two its top credit-market executives, Osman Semerci and Dale Lattanzio. According to persons close to the firm, the CEO O'Neal lost confidence in the executives' ability to manage the business (WSJ, print edition, October 6-7, 2007,page 1).
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OSMAN SEMERCİ, head of FICC of Merrill Lynch & Co

Thursday, July 27th, 2006

http://www.wearetheturks.org/?p=342

Osman Semerci, senior vice president and head of EMEA Global Markets, has been promoted to run fixed income and equities worldwide.

He is responsible for all debt and equity businesses in Europe, Middle East and Africa (EMEA).

Most recently, Mr. Semerci served as head of Pacific Rim Global Markets from September 2003 to January 2005, where he was responsible for the Debt and Equity businesses in Japan, Asia and Australia.

Previously, Mr. Semerci was head of Pacific Rim Debt Markets and prior to that head of EMEA Investor Client Group.

Mr. Semerci joined Merrill Lynch’s International Private Client Group in Geneva in June 1992 as a financial consultant. In March 1993, he moved to London as a fixed income salesperson in Global Debt Markets. Between 1996 and 1998, Mr. Semerci formed and led Merrill Lynch’s institutional fixed income cash and derivatives client businesses in European Emerging Markets. From 1999 to 2001, he built and was responsible for the new Strategic Solutions Group in EMEA, a group focusing on providing tailor-made solutions for investor and issuer clients in Europe.

Before joining Merrill Lynch, Mr. Semerci began his career in 1990 with Turkinvest, first as a trader of Turkish equities in Istanbul and subsequently as a commodity trader in Switzerland.

Born and raised in Turkey, Mr. Semerci holds a postgraduate degree in management from Marmara University in Istanbul, Turkey, and a Bachelor of Science degree in electrical and electronic engineering from Bosphorus University, also of Istanbul.

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