Wachovia's Staggering Losses Reflect Bad Loans
The nation's fourth largest bank, Wachovia Corp., reported that it had lost $8.9 billion in the second quarter due to soaring bad mortgage debt, leading the bank to cut its dividend and slash 6,350 jobs in response to mortgage-related losses -- a testament to the bad loans the company made during the housing boom, The Post's Frank Ahrens reports.
Wachovia tapped former Treasury under secretary Robert K. Steel, a former key architect of the Bush administration's response to the mortgage crisis, as its chief executive earlier this month.
Wachovia's troubles are the latest in a series of billion-dollar losses for some of the nation's biggest banks, detailed in a three-part Post series called "The Bubble." Some forecasters predict that three million more homes could go into foreclosure in coming years because of the mortgage and credit crisis, which has quickly spread to Wall Street.
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