As it announced earnings, Wachovia (WB) told the market that it would have to nearly destroy itself to make a comeback.
The big bank lost $8.86 billion, or $4.20 a share, in the second quarter, hurt by a $6.1 billion impairment charge on declining market valuations and asset values.
Wachovia will reduce the quarterly common stock dividend to five cents per share, which will save approximately $700 million of capital per quarter. It will also exit the wholesale mortgage origination business.
Shares fell as much as 10% before the bell.
Douglas A. McIntyre
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