Wachovia Takes Massive $23.9B 3rd Quarter Loss

Writedowns lead to $11.18 per share loss; Wells Fargo says merger on track
By Jim O'Neill,  Newser Staff
Posted Oct 22, 2008 8:40 AM CDT
Wachovia Takes Massive $23.9B 3rd Quarter Loss
In this Sept. 29, 2008 file photo, a woman is reflected in the window of a Wachovia branch office in New York.   (AP Photo/Peter Morgan, file)

Wachovia reported losses of $23.9 billion in the third quarter, a whopping hit of $11.18 per share that blew by analysts’ estimates of a 2-cent-per-share loss, reports Bloomberg. But Wachovia’s loss—virtually all tied to mortgages or mortgage-related securities—may be Wells Fargo’s gain.

New tax rules allow Wells Fargo, which agreed to buy Wachovia for $14 billion, to more easily absorb the losses. “The more losses the better off they are,'' an analyst tells Bloomberg. “It's kind of a free pass.'' Wells Fargo said the company is “on track” to complete the merger, which will help give it a nationwide presence.
(Read more financial crisis stories.)

We use cookies. By Clicking "OK" or any content on this site, you agree to allow cookies to be placed. Read more in our privacy policy.
Get the news faster.
Tap to install our app.
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.