![]()
|
CNBC'S MOST SHARED
- A Goldman Trading Scandal?
- 'We're in the Middle of a Crash': Black Swan
- The Rising Mountain of Debt May Be the Next Crisis
- SEC May Reinstate Rules for Short-Selling Stocks
- Malaysia PM Speaks to CNBC
- Latvian Banker Taking Souls as Collateral
- Alaska Governor Sarah Palin Will Resign
- Your First Move For Monday July 6th
- Texting And Driving Worse Than Drinking and Driving
- Bank of America Topples UBS as World Wealth Manager
- Plan to Sell General Motors' Assets Is Approved
- UBS Says It Stays Committed to US Brokerage
- UK Spy Chief's Wife Posts Life on Facebook
- China Launches Major Step to Yuan Internationalization
- Alcoa to Post Loss — What Does This Mean?
- A Goldman Trading Scandal?
- Nigeria Rebels Attack Oil Facility, Hijack Tanker
- China Says 140 Die in Rioting
- Warren Buffett Lunch Winner: I Won't Profit From Stock Tip Windfall
- Go for Good Energy Companies: Bob Doll
- Yoshikami: A No Jobs Recovery Is Bad News
- Market 360: The Week's Best & Worst
- Fireworks At Pharma's Market
- Value of Warren Buffett's Annual Gift to Gates Foundation Falls Along With Berkshire's Stock
- Michael Jackson: The Music And The Money
- Five Stock Picks for This Market
- Realities of the New Obama Refis
Wachovia said Friday it suffered a $1.1 billion loss on subprime mortgage-related debt in October, while Capital One Financial said more customers are having trouble paying their bills as the U.S. credit crisis deepened.
![]() |
Chuck Burton / AP A Wachovia bank branch. |
Wachovia also said it expects to boost loan losses by $500 million to $600 million this quarter, largely in geographic areas that have faced "dramatic declines" in housing values.
Wachovia shares dropped $1.83, or 4.5 percent, to $38.47 in early electronic trading.
Charlotte, North Carolina-based Wachovia joined a growing list of financial companies -- including Citigroup, Merrill Lynch and Morgan Stanley -- that have reported losses from worsening conditions in consumer credit and capital markets.
Credit analysts at Citigroup this week estimated industrywide losses from asset-backed CDOs could reach $64 billion.
Capital One, the largest independent MasterCard and Visa credit card issuer, said on Friday its rate of net charge-offs on a managed basis rose to 3.28 percent in October from 2.86 percent in the third quarter.
The charge-off rate in U.S. cards rose to 5.11 percent from 4.13 percent in the same periods, while the rate of loans at least 30 days past due rose to 4.75 percent from 4.46 percent.
On Tuesday, Capital One boosted its forecast for 2008 credit losses to between $4.9 billion and the mid-$5 billion range. It had projected $4.9 billion on Oct. 18.
Wachovia and Capital One made their disclosures in U.S. Securities and Exchange Commission filings. Wachovia is expected to file its quarterly report with the agency later Friday.
Bank of America, the nation's second-largest bank and by far its largest consumer bank, is also expected to file its quarterly report later Friday.
Separately, Wachovia said it will reduce reported third-quarter profit by $72 million, or 4 cents per share, to reflect its share of Visa Inc.'s $2.1 billion antitrust litigation settlement with American Express on Wednesday.
Last month, Wachovia reported quarterly profit of $1.69 billion, or 89 cents per share.









