Wachovia Boosts Loss Provision Estimate
Wachovia Wednesday in a federal filing that it now sees a loan loss provision in the fourth quarter of about $1 billion in excess of charge-offs, sending its shares lower in early trading.
The bank said it had previously seen a loan loss provision in the fourth quarter of $500 million to $600 million in excess of charge-offs.
Wachovia said it was making the filing prior to a presentation at a Goldman Sachs conference on Wednesday.
The company said it had previously told investors in its third-quarter report that valuation losses totaled $1.34 billion pretax for the period ending Sept. 30. It also disclosed further estimated valuation losses in the month of October of an estimated $1.1 billion pretax.
The losses included commercial and consumer mortgage, leveraged finance and structured products, including subprime-backed mortgage securities, according to the Charlotte, North Carolina-bank's filing with the U.S. Securities and Exchange Commission.
In early trading, Wachovia's shares fell $1.17 or 2.8 percent to $40.78 on the New York Stock Exchange, the top decliner among major banks.