Ive been staring at these headlines all day and these just don’t add up…
Washington Mutual reports 2Q loss of $3.3 billion
Congratulations Washington Mutual you lost $3.3 billion dollars in just 3 months. They also announced that they are setting aside $8 billion to cover future losses. The losses for Q2 equate to $6.58 per share, and the current stock price is at $5.84 - meaning that they lost more money per share than 1 share of their company is worth! Good job guys…
Mortgage giant rescue could cost $25b
Congratulations Fannie Mae & Freddie Mac - the US government - ie. me, my wife, my family and my neighbors is going to bail you out for $25 billion dollars. Thats just the beginning, the Treasury is suggesting that the full losses could be as high as $100 billion dollars. These 2 companies back or are related to companies that back nearly 50% of all US household mortgages and you want me to pay more in taxes to bail you out? Good job guys…
Wachovia loses $8.9B, cuts 6,350 workers, dividend
Wachovia, you’ve been doing really well growing for the last few years, little did we know that it was because you were making bad loans and spending $25 b to buy companies called Golden West Financial that offers “pick-a-payment” loans. $122 billion of your pick-a-payment portfolio that you bought is deteriorating quickly isnt it? Wachovia said it is setting aside $10.96 billion for credit losses, up from $6.77 billion in the first quarter and $3.55 billion a year earlier. Profits in consumer and business banking, Wachovia’s largest unit, fell 23 percent to $1.12 billion, hurt by rising credit costs, mainly for mortgages. The corporate and investment banking unit had a $209 million profit, down 73 percent, reflecting write-downs tied to subprime mortgages, commercial mortgages, non-subprime debt and consumer mortgages. Capital management profit fell 5 percent to $297 million, hurt by the liquidation of an Evergreen Investments fund, while wealth management profit rose 9 percent to $98 million. Wachovia, you should have stuck to your main line of business, but you didn’t….. Good job guys…
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