Merrill Lynch recorded losses of $2.24 billion for the third quarter ended September 28, 2007. The US giant which is being takeover by its rival Bank of America posted losses for the fifth consecutive quarter.

The battered firm had revenues of $16 million for the quarter under review as against $380 million in the same period a year ago.

According to a statement, Merrill Lynch said it incurred net write-downs worth $9.5 billion including $3.8 billion "principally from severe market dislocations in September, including real estate-related asset write-downs and losses related to certain government sponsored entities and major US broker-dealers, as well as the default of a US broker-dealer."

One of the early victims of the ongoing financial turmoil, Merrill Lynch agreed to be taken over by Bank of America, in a distressed sale of about $50 billion.

The company had incurred more than $50 billion in losses and write-downs related to the sub-prime crisis.

However, for the third quarter ended September 26, 2008, the firm had a net pre-tax gain of $4.3 billion from the previously announced sale of the 20 per cent ownership stake in Bloomberg.