Jubilee on Earth
August 3rd, 2008, 08:19 AM
http://www.reuters.com/article/topNews/idUSWNAB160920080722
NEW YORK (Reuters) - Wachovia Corp, the fourth-largest U.S. bank, on Tuesday posted an $8.86 billion second-quarter loss, slashed its dividend and announced the elimination of more than 10,700 jobs after losses tied to mortgages soared...
..."The credit deterioration was worse than expected," said Gerard Cassidy, an analyst at RBC Capital Markets, who has a "sector perform" rating on the bank.
"Wachovia is in capital-preserving mode, which means it has to shrink its balance sheet, leading to a vice-like effect on income statement," he added. "Revenue growth will likely shrink, even as operating expenses rise. This will lead to lower earnings, or possibly losses, in the future."
NEW YORK (Reuters) - Wachovia Corp, the fourth-largest U.S. bank, on Tuesday posted an $8.86 billion second-quarter loss, slashed its dividend and announced the elimination of more than 10,700 jobs after losses tied to mortgages soared...
..."The credit deterioration was worse than expected," said Gerard Cassidy, an analyst at RBC Capital Markets, who has a "sector perform" rating on the bank.
"Wachovia is in capital-preserving mode, which means it has to shrink its balance sheet, leading to a vice-like effect on income statement," he added. "Revenue growth will likely shrink, even as operating expenses rise. This will lead to lower earnings, or possibly losses, in the future."