Merrill Sheds Profits, Bloomberg (Update2)

Updated from July 17.

Merrill Lynch(MER Quote) posted a second-quarter loss far beyond Wall Street expectations on Thursday, as the bank sold its stake in Bloomberg LP back to the financial information provider to shore up capital.

Merrill reported a loss of $4.7 billion, or $4.97 per share, driven by its exposure to risky structured finance, residential mortgages and investments in the U.S. banking sector. It is the firm's fourth consecutive quarterly loss, comparing to net earnings of $2.1 billion, or $2.24 per share, a year earlier. Analysts had expected a loss of $1.91 per share, on average.

Merrill posted $9.4 billion in writedowns and impairment charges, with negative net revenue of $2.1 billion. That figure compares with a positive $9.5 billion a year earlier. ...