Think Merrill Lynch has put the worst of the credit crunch behind it? Goldman Sachs analysts are not convinced. They are telling clients to sell. After a recent stock run that ended last week, Merrill traded at the highest price-to-book multiple in the brokerage group. This despite "some of the most significant exposures to troubled assets such as collateralized debt obligations, mortgages and leveraged loans." There is little justification for the stock move, the analysts argue. They boosted their loss prediction to $5.75 a share, compared to $4.75 previously. In somewhat of a contrast to Goldman Sachs, Sandler O'Neill rates Lehman a hold. The third quarter is shaping up to be more exciting than most of us would like. Merrill Lynch is generating lots of anxiousness. Lehman Brothers' earnings report has become a real cliffhanger.

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