Analysts expect another $8bn (€5.5bn) writedown is on the way for Merrill Lynch, and $33.6bn for other banks as writedowns keep piling up despite the trend of financial services firms reaching out their tin cups for capital infusions.

Banc of America Securities analyst Michael Hecht predicted this week that Merrill Lynch will have to take another $8bn writedown, instead of the $2.5bn he previously expected. Hecht said he expected Merrill Lynch to write down $7bn of its estimated $16bn exposure to asset-backed collateralized debt obligations, or ABS CDOs, and another $1.1bn of its $5.7bn exposure to US sub-prime loans.