More banking trouble, this time it's one of the Big Boys (Wachovia)

[NightWatcher]

The term "strapped for cash" has been floating out there today.

A few news stories for our friends at Wachovia

http://articles.moneycentral.msn.com/Investing/Dispatch/080414markets.aspx
Wachovia reports unexpected loss
Wachovia (WB, news, msgs) is the latest financial institution to find itself strapped for cash.

The bank said this morning that it will raise $7 billion dollars to shore up capital hit by the subprime-mortgage mess. The bank also said it will slash its dividend.

Finally, Wachovia reported a disappointing first-quarter loss four days before it was scheduled to report.

Shares plunged $3.11, or 11.2%, to $24.70 in pre-open trading this morning.

btw, do you have 7 Billion that Wachovia could borow for a while?

http://www.bizjournals.com/nashville/stories/2008/04/14/daily3.html
Report: Investment groups could pour $7 billion into Wachovia
Wachovia Corp. is working on a deal that would give the bank a capital infusion of several billion dollars from outside investors, according to a report Sunday by the Wall Street Journal.

The paper reported on its Web site that executives were negotiating with an investor group that would pump up to $7 billion into the bank. The investors would get shares priced roughly $23 to $24 apiece.

Wachovia's stock price has plummeted over the past year, losing half its value, closing Friday at $27.81.

http://money.cnn.com/quote/quote.html?symb=WB

[mitchleary]

1. Like pigs at a trough...

They see Bear Sterns get bailed out by tax payer dollars, and they want a piece. Where do i get a deal in which the profit is all mine and the risk is everyone else's?

And these are the idiots they want to manage social security?

[enid602]

2. investor

I wonder if the new 'investor' is the Fed.