Wachovia’s shares are hurting today, after the company posted a $10 billion dollar second quarter loss, cut it’s dividend, and resigned from the wholesale mortgage business (which, of course, will kill a load of jobs). The dollar dropped after the report, and now Wachovia’s stock price is plummeting.
Here’s more, from The Street:
- The Charlotte, N.C.-based bank recorded a loss of $8.9 billion, or $4.20 a share, compared to a profit of $2.34 billion, or $1.22 a share, in the year-earlier period. Analysts, according to Thomson Reuters, expected the firm to post a loss of 78 cents a share.
- The loss included a $6.1 billion non-cash goodwill impairment charge in commercial-related sub-segments reflecting declining market valuations and asset values. Wachovia said the goodwill impairment charge has no impact on its tangible capital levels, regulatory capital ratios or on liquidity.[...]
- To preserve capital, Wachovia plans to reduce its headcount by 6,350 employees, or roughly 5% of its workforce. The bank said it has already reduced its mortgage employee headcount by 2,000 through June, and plans to cut 4,400 employees in its mortgage segment over the next year, according to presentation slides.
Read the full story here.
Kangaroo 4 months ago
Can’t say I’m very surprised. Sad though.