Wachovia to Raise Capital After Loss |
| New York Times - Apr 14, 2008 |
Wachovia, the country’s fourth-largest bank, posted an unexpected loss on Monday, reduced its dividend and said it would raise about $7 billion from investors because of mounting housing losses and an ill-timed acquisition of a big California mortgage lender.
The loss for the first quarter was $393 million, or 20 cents a share, compared with a profit of $2.3 billion, or $1.20 a share, in the period a year earlier. Revenue fell 4.5 percent, to $7.89 billion from $8.27 billion. Shares of Wachovia were down 12 percent in premarket trading.
Wachovia will raise the $7 billion through the sale of common and convertible preferred stock. It is also cutting its quarterly dividend 41 percent, to 37.5 cents a share from 64 cents, which will save $2 billion a year.
Read Full Article from New York Times
- Posted: 2008-04-14 08:52:15
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