Tough Times at Wachovia

News from Wachovia rattled the markets today. The big bank moved its earnings call up a few days. That usually means bad news, and that was the case today. CEO Ken Thompson said Wachovia lost $393 million last quarter and to compensate for that and its weakening portfolio, it would raise $7 billion in capital, lay off 500 workers in the investment banking group (not good news for Charlotte), and cut the dividend by 41%. Read the New York Times story here. Meanwhile, Portfolio.com's Felix Salmon wonders why Wachovia says it wil raise $7 billion, on top of the $8.3 billion it raised earlier this year, when it lost "only" $393 million. Could an "enormous writedown" be coming?
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