Merrill Lynch & Co. Inc. (NYSE: MER) is trading down 6% or so in pre-market after Goldman Sachs downgraded the stock to a SELL rating and put shares on its Conviction Sell List.  The firm says that it trades at the highest price-to-book multiple in the large cap brokerage firm universe.  The firm also noted that Merrill Lynch has some of the most significant exposure to CDO's, mortgages, and leveraged loans.  Shares closed yesterday at $26.21 and are trading south of $25.00 this Friday in pre-market trading.

Just yesterday, Goldman Sachs (NYSE: GS) issued an SEC Filing showing trading losses in one of its hedge fund groups.

Jon C. Ogg

September 5, 2008