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Friday, November 09, 2007

Wachovia sees higher loan losses

by Calculated Risk on 11/09/2007 10:06:00 AM

From MarketWatch: Wachovia sees higher loan losses

Bank says CDO portfolio lost more than $1 bln during October

Due to the October market deterioration, its asset-backed collateralized debt obligations, or CDOs, experienced further declines in value in the month of October 2007 by an amount it currently estimates to be approximately $1.1 billion pre-tax.

In the third quarter, market disruption-related losses totaling $1.3 billion pre-tax included $347 million of subprime-related valuation losses, net of hedges, on CDOs.