Wachovia Visits the Confessional

Reuters reports: Wachovia 4th-quarter profit sinks 98 percent

Results reflected $1.7 billion of net market-related losses, virtually all of which related to structured products including collateralized debt obligations. This included losses of $1 billion related tied to subprime mortgages, $600 million for commercial mortgages, and $123 million for other consumer mortgages, Wachovia said.

Wachovia said it also set aside $1.5 billion for credit losses.

The problems aren't contained to residential mortgages, from the WSJ: Wachovia's Net Plummets As Loan-Loss Provision Rises

Commercial loans 90 days past due grew to 0.89% of loans from 0.23%, while consumer loans 90 days past due rose 1.39% of loans from 0.59%. Nonperforming assets, those loans near default, grew to 1.08% of loans from 0.32%.

Delinquencies are rising across the board.