Wachovia's First Quarter Losses Worse Than Previously Reported

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Wachovia's First Quarter Losses Worse Than Previously Reported

Story Published: May 6, 2008 at 1:40 PM EST

Story Updated: May 6, 2008 at 1:40 PM EST

CHARLOTTE, N.C. (AP)- Wachovia is nearly doubling its loss for the first-quarter to $708 million after reviewing its portfolio of bank-owned life insurance.

The Charlotte, North Carolina-based bank reported last month a $393 million first-quarter loss, cutting its dividend and seeking a $7 billion cash injection at the same time.

Wachovia said yesterday it had reviewed information regarding
stable value agreements totaling $360 million, which were provided by a third-party guarantor with respect to three related contracts within its bank-owned life insurance portfolio.

The nation's fourth-largest bank said it will record valuation losses of $315 million on the assets, increasing its net loss to $708 million or 36 cents a share.

Wachovia is the largest bank in the Augusta market.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

Rich Rogers contributed to this story.

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Wednesday, May 7 at 3:53 PM moya1@bellsouth.net wrote ...

Something fishy is going on at Wachovia if they are reporting losses. I closed my accounts today and will not receive the credit balance for two to three weeks (no interest will be accrued). If I deposit funds on Friday after 4:00 p.m. the amount is not available until the following Tuesday. What are they doing with my money during the interim? Surely there are enough such transactions to keep the bank from posting losses?

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