Nofsdad
Joined: 06 Jul 2003
Posts: 7087
Location: Central CA
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Posted: Wed Jul 23, 2008 3:10 pm Post subject: The Next Biggie To Bite The Big One?
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Wachovia loses $8.9B, cuts 6,350 workers, dividend
Is this the next one in line for its "infusion of liquidity"?
| Quote: |
| Wachovia Corp. reported a surprisingly large second-quarter loss Tuesday, deflating Wall Street's hopes that the nation's big banks are weathering the credit crisis well. The nation's fourth-largest bank by assets said it lost $8.86 billion, is slashing its dividend and eliminating 10,750 positions after losses tied to mortgages soared. |
| Quote: |
| "These bottom-line results are disappointing and unacceptable," Chairman Lanty Smith said in a statement. "While to some degree they reflect industry headwinds and weaker macroeconomic conditions, they also reflect performance for which we at Wachovia accept responsibility." |
Now that's refreshing. Someone accepting responsibility for ANYTHING going on in the financial sector these days is rare. I wonder if his acceptance extends to taking a cut in his own compensation and that of the executive staff that made the decisions that led to 10k plus people being unemployed.
| Quote: |
| Earlier this month, Wachovia had projected a $2.6 billion to $2.8 billion quarterly loss, equal to $1.23 to $1.33 per share, excluding goodwill items. |
Oops! Missed it by THIS______________________________________much. They call it missing the estimate, but when it amounts to missing it by 75% or so as they did in this case, I call it lying to your shareholders.
| Quote: |
| Late Monday, Wachovia announced plans to leave the wholesale mortgage lending business. And beginning Friday, the company will no longer offer mortgages through brokers, joining other lenders making similar moves to exit the troubled sector. |
And when and IF this thing ever begins to right itself... where will the competition that's supposed to allow market forces to govern be?
| Quote: |
| Earlier this month, Wachovia named former Treasury Undersecretary and Goldman Sachs executive Robert Steel as chief executive, replacing the ousted Ken Thompson. Within a week of being on the job, the bank's shares tumbled to a new 17-year low. |
Involving Goldman Sachs parasites can have that effect on a business. Yeah it can. 
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