Wachovia 4Q Earnings Plummet 98 Percent

CHARLOTTE, N.C. -
National bank Wachovia Corp. said Tuesday its fourth-quarter earnings tumbled 98 percent due to a $1.7 billion reduction in the value of certain portfolios and $1.5 billion set aside to cover bad loans.

Fourth-quarter net income fell to $51 million, or 3 cents per share, from $2.3 billion, or $1.20 per share, during the same period the previous year.

Excluding merger-related expenses, Wachovia (nyse: WB - news - people ) earned $160 million, or 8 cents per share, during the fourth quarter.

Analysts polled by Thomson Financial, on average, forecast earnings of 33 cents per share for the quarter. One-time charges are not always included in analysts' estimates.

"The continued turmoil in the capital markets and the dramatic change in the credit environment diminished our fourth quarter results substantially," Ken Thompson, Wachovia's chairman and chief executive, said in a statement.

Wachovia took a $1.7 billion write-down during the quarter due to weakening credit markets. Banks have been forced to reduce the value of bonds and debt backed by mortgages and other consumer loans that have increasingly defaulted in recent months.

more at link: http://www.forbes.com/feeds/ap/2008/01/22/ap4556875.html

:eyes:

$200,000 to a German account - and repeatedly said to transfer dollars. But the girl sent the money in euros and the Wachovia rate was 1.46 when the German rate was 1.41. She insisted I wanted it that way but I later found out that that is standard operating procedure -- that's how they make money off transfers. Buyer beware with this fucking bank!