Surprise Loss, $7B Cash Infusion for Wachovia

Fourth-largest bank was prime player in mortgage mess
By Jonas Oransky,  Newser Staff
Posted Apr 14, 2008 8:47 AM CDT
Wachovia kicks off an 11 city-tour for Way2Save in Los Angeles with the world's largest money machine on Tuesday, Feb. 19, 2008.   (AP Photo)
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(Newser) – Wachovia reported a surprise first-quarter loss today 2 years after taking over a subprime-dealing savings and loan. The CEO of the fourth-largest US bank was “deeply disappointed” that the bank lost $393 million, or 20 cents a share; analysts had anticipated earnings of 40 cents a share, Bloomberg reports. Wachovia cut its dividend; it plans to raise $7 billion to replenish capital reserves by selling shares and axing 500 jobs.