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MONDAY, NOVEMBER 23, 2009
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Wachovia Takes Massive $23.9B 3rd Quarter Loss

Writedowns lead to $11.18 per share loss; Wells Fargo says merger on track

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(Newser) – Wachovia reported losses of $23.9 billion in the third quarter, a whopping hit of $11.18 per share that blew by analysts’ estimates of a 2-cent-per-share loss, reports Bloomberg. But Wachovia’s loss—virtually all tied to mortgages or mortgage-related securities—may be Wells Fargo’s gain.

New tax rules allow Wells Fargo, which agreed to buy Wachovia for $14 billion, to more easily absorb the losses. “The more losses the better off they are,'' an analyst tells Bloomberg. “It's kind of a free pass.'' Wells Fargo said the company is “on track” to complete the merger, which will help give it a nationwide presence.

In this Sept. 29, 2008 file photo, a woman is reflected in the window of a Wachovia branch office in New York.
In this Sept. 29, 2008 file photo, a woman is reflected in the window of a Wachovia branch office in New York.   (AP Photo/Peter Morgan, file)
In this Oct. 3, 2008 file photo, a customer uses an ATM outside a Wachovia branch bank in Charlotte, N.C.
In this Oct. 3, 2008 file photo, a customer uses an ATM outside a Wachovia branch bank in Charlotte, N.C.   (AP Photo/Chuck Burton, file)
In this April 16, 2007 file photo, exterior view of a Wells Fargo Bank in Sunnyvale, Calif. Federal regulators on Friday, Oct. 10, 2008, cleared Wells Fargo's $11.7 billion acquisition of Wachovia.
In this April 16, 2007 file photo, exterior view of a Wells Fargo Bank in Sunnyvale, Calif. Federal regulators on Friday, Oct. 10, 2008, cleared Wells Fargo's $11.7 billion acquisition of Wachovia.   (AP Photo/Paul Sakuma, file)
A Wachovia bank, foreground, is shown across the street from a Wells Fargo Bank, background, in Mountain View, Calif.
A Wachovia bank, foreground, is shown across the street from a Wells Fargo Bank, background, in Mountain View, Calif.   (AP Photo/Paul Sakuma)
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Wachovia takes $18.1 billion in writedowns
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