Wachovia has $8.9B loss, cuts 6,350 jobs, dividend

[Omaha Steve]

Source: Associated Press

By IEVA M. AUGSTUMS

CHARLOTTE, N.C. (AP) - Wachovia Corp. (WB) (WB) said Tuesday it lost $8.86 billion in the second quarter, slashed its dividend and announced 6,350 job cuts after losses tied to mortgages soared.

Even excluding one-time items, the results substantially missed Wall Street estimates, and shares sank to mid-1991 levels in premarket trading.

"These bottom-line results are disappointing and unacceptable," Chairman Lanty Smith said in a statement. "While to some degree they reflect industry headwinds and weaker macroeconomic conditions, they also reflect performance for which we at Wachovia accept responsibility."

The nation's fourth-largest bank by assets says it lost the equivalent of $4.20 per share in the April-June period. In the same timeframe last year, the bank earned $2.34 billion, or $1.22 per share.

Read more: http://apnews.excite.com/article/20080722/D922SJLO0.html

[mikita]

1. right,

and they're building a new office in Asheville.

Makes perfect sense.

[TheMadMonk]

3. You ever considered giving thought a try?

The project you mention will have been planned, budgeted and set in motion long ago.

Pulling the plug on it now would accomplish nothing except cost them even more money. Not to mention the wholesale layoffs that would take place in the construction industry. (Not saying that that would necessarily be a consideration to them, but it most certainly should be to you.)

[A Simple Game]

4. I think mikita was referring to Asheville, the name of the city. NT

[leveymg]

2. Will they continue to pretend there isn't a systemic banking/real estate collapse underway?

When is someone going to state the obvious: this is part of a great jobs/earnings/credit crisis in America. In other words, a managed Depression. The most managable thing about is public perception.

Or, is this still just a "sub-prime mess" caused by people "walking-away" from their mortgages?

[Indenturedebtor]

6. This is a systemic down regulating market correction - not a depression n/t

[tismyself]

5. Charlotte news has different numbers

Charlotte Observer says 10,750 jobs are being cut.

[Demobrat]

8. 4,000 are so are open positions

that won't be filled.

[slipslidingaway]

7. From the article...

"...In premarket trading Tuesday the stock shed nearly 12 percent to $11.80. That level would mark the stock's lowest price since roughly June 1991."


Except that on 7/15/08 the stock hit a low of 7.80 and is currently over 14 dollars.

:shrug:


http://www.prophet.net/analyze/javacharts.jsp

[TheWatcher]

9. Well, if people think things are so great, they should buy the stock with both hands

And deposit their life savings in one of Wachovia's banks.

Go ahead, I DARE you.

It seems these days that TPTB main focus and job is to manage the perception of the general public rather than manage and solve the systemic problems that threaten the economy, and the financial system at large.

It seems, for the most part, to be working like a charm, unfortunately.

When the real Hard Rain begins to fall, most Americans will not even be aware they are getting wet.

[leveymg]

10. Until they drown.

most Americans will not even be aware they are getting wet

[slipslidingaway]

12. The article was plain wrong in saying that today the stock

reached the lowest level since 1991, many times the good or bad news is already factored into the price.

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=3629589&mesg_id=3630179

Many problems remain I agree, but we also know that the
Edited on Wed Jul-16-08 05:59 PM by slipslidingaway
stock market and news on the economy do not always coincide, if they ever do.

[Commie Pinko Dirtbag]

11. I said it before and I'll say it again: that bank's named like a fictitious Eastern European country

[Rex]

13. Just that drunk economy, getting all boozed up again!

[Endangered Specie]

14. Glad I dont have one cent with them!

[Supersedeas]

15. nothing to see here -- feed them more Batman gone wild infortainment