Wachovia To Set Aside Up To $600 Million For Fourth Quarter Loans

Wachovia says the value of its collateralized debt obligations dropped last month by an estimated 1.1 billion dollars, pretax.

The Charlotte (North Carolina) bank says that will require a writedown of about $1.11 per share for October.

Wachovia's writedowns for its exposure to mortgage-backed securities and CDOs, complex instruments that combine slices of
different kind of risk, totaled 35 cents a share for the third
quarter.

Wachovia's filing with the Securities and Exchange Commission says the market in November remains "extraordinarily volatile."

The company plans to boost its allowance for loan losses in the fourth quarter because of expected credit deterioration in the housing market. The provision is pegged at 500 million dollars to 600 million dollars in excess of charge-offs in the quarter.


Comments are posted from viewers like you and do not always reflect the views of this station.
powered by Disqus
WITN

275 E. Arlington Blvd. Greenville, NC 27858 252-439-7777
Copyright © 2002-2014 - Designed by Gray Digital Media - Powered by Clickability 11143821 - witn.com/a?a=11143821
Gray Television, Inc.