Wachovia Blows Q1, Cuts Dividend, Plans to Raise $7 billion

The fourth largest bank in the US lost $393 million (20 cents per share) in Q1, down from $2.3 billion ($1.20 per share) last year. Analysts were looking for a profit of 40 cents. Stock down 8% in Europe. The excuse? What else? Subprime.

Top managers will now follow up their catastrophic decisions of the past few years (for which they no doubt took home hundreds of millions in comp) by further diluting shareholders: Wachovia plans to raise $7 billion in capital and cut its dividend in order to remain solvent.

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