Merrill's earnings disappoint

Merrill Lynch's loss of $2.19 a share was worse than the $1.99 a share analysts expected on average. That average estimate, of course, had moved lower dramatically as earnings day approached. It's clear that Merrill Lynch looms as the challenge of John Thain's career. The move to cut 4,000 jobs will help, but it's unclear if additional writedowns will be needed. The company wrote off about $4.5 billion in the first quarter. Some thought writedowns would be in the $6 billion range. So what to expect going forward? Well, if the markets were to re-inflate, that would help. For now, the company is in a cash-constrained situation that may require more capital.

For more:
- here's the release

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