Wachovia Has Record $8.9 Billion Loss, Cuts Dividend

The loss includes a $6.1 non-cash goodwill charge. This does not have any effect on their tangible capital whatsoever. They still have a tier 1 capital ratio of nearly 8% which is pretty darn good if you know anything about bank stocks. Depsite their write-down as it relates to the Golden West Financial write-down, their core banking business grew. Obviously not good news, but not as bad or shocking as it may appear.
 
Quote from Sarasota:

The loss includes a $6.1 non-cash goodwill charge. This does not have any effect on their tangible capital whatsoever. They still have a tier 1 capital ratio of nearly 8% which is pretty darn good if you know anything about bank stocks. Depsite their write-down as it relates to the Golden West Financial write-down, their core banking business grew. Obviously not good news, but not as bad or shocking as it may appear.
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THE LATEST WALL STREET CATCH PHRASE FOR THIS LOSS IS IT COULD HAVE BEEN WORSE!
 
Quote from Sarasota:

They still have a tier 1 capital ratio of nearly 8% which is pretty darn good if you know anything about bank stocks
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this is like saying 'I only have cancer on 5% of my body, thats pretty good if you know anything about health'
if you know anything about how to read a balance sheet and math you know they are pratically insolvent.
$120B of pick a pay loans that will go bad, hard. I'm no expert on their accounts but as far as I know their tangible equity is overstated by phantom profits(Retained earnings on the balance sheet) that came from borrowers who made minimum payments on pick a pay and the difference between what they should have paid and what they paid was booked as revenue, when they foreclose WB writedowns tangible equity

the management is behaving like everybody else doing the 'reserve as you go', WB is a close as you can get to short CA real estate housing prices and foreclosures, anybody who lives there could hedge their house by shorting these guys
 
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