Could someone explains what is going on at Merrill Lynch?

[leftyladyfrommo]

Do I need to close my account with them?

I keep seeing things about their huge losses but does that really affect people like me who have some stock with them?

[TexasObserver]

1. They lost $4.9 billion recently.

I don't think you need to be worried about whatever you may have invested with them.

[willing dwarf]

2. But they're still expecting to turn a profit this quarter

ot so I hear.

[TexasObserver]

8. I don't know if they will or not, but I don't think the $4.9 bil loss would keep them from it.

Even if they lose money this year, that's ML, not the funds the OP has there. I'd be more concerned about the market in general, than in worrying about ML's losses.

I'm assuming OP has a 401K with a port folio of safe investments.

[willing dwarf]

10. Heard it on NPR and It blew me away too

But you know, NPR seems like such a tool of the corporate gov't nexus that they'll just give voice to whatever the PR people at Merrill Lynch (among others) tell them.

Why do I still listen?

[leftyladyfrommo]

5. I think they lost more than that.

Seems like there was one huge loss not long ago. And then I saw there was another huge one just a couple of days ago.

I just don't get how these huge companies got into so much trouble. Do they not have anyone working there that has seen these cycles in the past.

I don't understand why so many people just fell hook, line and sinker for this whole subprime mortgage deal. People who have been in the industry for years all could have told you this whole thing was going to end badly. But I don't think anyone wanted to listen. Too much greed going on out there.

[supernova]

3. I have accounts with them too

The losses are from selling those bad mortgage loans. I don't think it has much to do with the individual investor side of things.

Bad! Bad ML :spank:

[leftyladyfrommo]

7. Unless the whole company goes belly up.

Then what happens? Does another company just buy them out and everyone's investments just get transferred?

This stuff really makes me nervous. I have to live on that money.

[TexasObserver]

9. If you're nervous, you need to have someone you trust go over this with you.

I don't want to ask about your situation, but if you're living off the funds, you have to ask yourself how safe it is to have all the money in one place.

If you're invested in the market, your values will decline while the market declines. The advantage of owning (safe) bonds, instead of stocks, in a declining market is that your interest rates on those bonds are locked in, and you get paid like clockwork. If you are invested in stocks, you are dependent upon either getting dividends or selling stock to produce revenues to you.

If you've got over $100,000 with Merrill and you depend on revenues from those funds for living expenses, you need to get someone to help you, and it needs to be someone you know personally and trust.

I don't think any of your money is at risk, but given the circumstances you described, you cannot afford to take even a 1% risk of a major loss.

Good luck.

[Cheney Killed Bambi]

4. I wouldnt worry

these are industry wide problems and not specific to any one company,

[spinbaby]

6. Oh goodie

We can all lose money.

[CK_John]

11. Keep all statements and transaction records to prove what your account contains.

Also be careful when moving stocks from broker to broker. This can take time (weeks). This is probably the worst place for advise because of the market fluctuations and every account is different.

There are possible tax questions, fees incured by switching, fly by night advisers, etc. Get professional guidance.

The market value of your shares should be the deciding factor not the broker.