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The article looks at possible options of Merrill Lynch & Co. in the wake of what is expected to be a fourth consecutive quarterly loss in June 2008. It cites that the concern that the company could be compelled to raise additional capital has affected its stocks in recent weeks. It adds that the most obvious alternative would be a sale of common stock, if another capital increase is considered. It notes that Merrill could also seek to offer more preferred stock for sale.

The article discusses the financial state of Lehman Brothers Holdings Inc. as of June 4, 2008. It states that due to its falling stocks, investors consider Lehman as the latest company weighing on financial stocks. The financial problems, it adds, can compel the firm to issue a big amount of equity, sell a part, or all of it to a larger financial company. A full discussion on the challenges facing the firm is provided.

The article reports that Citigroup Inc. revealed that traders in its investment bank garnered daily losses of more than $100 million on 15 separate occasions in 2007. The said transactions fueled speculations that the bank's problems may be greater than those that resulted in the estimated $20 billion mortgage-related writedowns in 2007, the ouster of its chief executive, and falling stock prices. The firm also disclosed the disastrous transactions in its annual report filed on February 22, 2008.

The article reports on the fear of investors that the problems of Citigroup Inc. which erupted in 2007 with multibillion subprime related losses are far from over. It says that the shares of the company fell 99 centavos or 4.3% to $22.10. Moreover, an analyst from Merrill Lynch predicted that Citigroup will possibly report a first-quarter loss in 2008 dragged down by as much as $18 billion in first-quarter write-downs on loans and investments.