This is quite a record Wachovia just set…
Reuters: Wachovia Corp (WB.N) on Wednesday posted a $23.9 billion third-quarter loss, a record for any U.S. lender in the global credit crisis, underscoring the challenges Wells Fargo & Co (WFC.N) will face after it acquires the big lender.
The loss totaled $11.18 per share, and followed a $9.11 billion loss in the second quarter.
Wachovia said results included an $18.7 billion writedown of goodwill. About two-thirds related to its retail and small-business operations, where a troubled $118.7 billion portfolio of “option” adjustable-rate mortgages lies. Most of the rest related to commercial banking operations, and some to asset management and wealth management operations.
The bank said the loss per share was $2.23 excluding items. Analysts on average expected a loss of 27 cents per share, according to Reuters Estimates.
Wachovia announced results after Wells Fargo this month agreed to pay $15.1 billion for the Charlotte, North Carolina-based lender, without any government backing to cover potential loan losses. The value fell by Tuesday to about $14 billion because Wells Fargo’s share price has declined.
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.