Wachovia's Wall of Worry
Wachovia (WB) expects to be inundated by problems in the housing market. So, the fourth-largest U.S. bank took some drastic steps on Apr. 14. It set aside $2.8 billion to handle rising losses on loans, most of them home mortgages. To prepare for even more losses, the bank said it will seek $7 billion to $8 billion in new capital, new stock that is certain to dilute current shareholders' stakes. Also, the bank's dividend will be slashed 41%, a move that will save the bank $2.1 billion over the next year.
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