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December 14, 2007
Wachovia doubles 4Q loan-loss provision to $1B
The company said it is doubling its expected loan-loss provision for the fourth quarter to $1 billion in excess of charge-offs. Wachovia previously estimated a loan-loss provision of between $500 million and $600 million because of loans turning sour in its mortgage-loan portfolio. Wachovia has seen loans turn bad in several areas in California and Florida.
According to a filing with the Securities and Exchange Commission, securities backed by loans dropped in value in the past two months at a rate equal to the decline in the third quarter, when Wachovia reported loan losses of $1.34 billion.
Posted by S. Germain at December 14, 2007 08:22 AM