Merrill has announced on last Thurday that it will sell its holding on Bloomberg Stakes for almost $4.5 billion. Merrill will not sell such a valuable investment if it is not urgently requiring cash. After frightening $9 billion write-down and $4.95-per-share loss for the second quarter (which exceeded even the most pessimistic estimates), Merrill still holds around $19.9 billion in long exposures to asset-backed collateralized debt obligations on its balance sheet (down from $26.3 billion at the end of the first quarter).
Additionally, Merrill still has to raised almost 50% extra capital this year, and is expected it has been massively selling off almost 60% its holding in overseas stakes for 9 months. It seems Selling BlackRock is only matters of time. Let's see on the chart below, soaring BlackRock Stocks for three days has been overbought and should be followed by correction.
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