NEW YORK - Wall Street bank Merrill Lynch warned Friday it would report a third-quarter loss with its bottom line taking about a $5.5 billion hit as a result of this summer's subprime crisis. Citing "extremely difficult" market conditions and a lack of liquidity, Merrill said it would post a net loss of up to 50 cents a share when it reports its quarterly results later this month. The company said as a result of its exposure in these two areas it would take a $4.5 billion writedown. It also warned it would take a $967 million writedown on a gross basis due to leveraged loan commitments.
By David Ellis
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