DOW JONES NEWSWIRES
Wells Fargo & Co. (WFC) swung to a fourth-quarter loss on a $5.6 billion credit reserve on slumping loan quality.
The company also reported that Wachovia, the struggling bank it bought Dec. 31 and didn't include in its bottom line, lost $11 billion in the period.
Wells Fargo agreed in October to acquire Wachovia days after federal regulators brokered a deal for the struggling bank to be acquired by Citigroup Inc. (C).
Wachovia has been weighed down by surging credit losses, notably related to its purchase several years ago of California-based mortgage lender Golden West. That saddled Wachovia with more-exotic loans that have been going bad fast as the housing market continues to deflate.
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