The bank this AM reports a Q1 loss of $393 million, or 20 cents a share. Analysts expected earnings of about 40 cents a share. Last year the bank earned $2.3b. in Q1, Bloomberg reports.
The upshot for Charlotte:
Wachovia also said today it will cut 500 investment banking jobs, without providing specifics. … About 58 percent of Wachovia’s $120 billion in adjustable-rate mortgages as of March 31 were in California, which ranks among the states hardest hit by the slide in housing prices.
Rut-roh. Most interesting — and disturbing to me — is that the loss somewhat surprised analysts. It shouldn’t have. Not with all exposure in California that Wachovia had, not with the bank’s ARM exposure.
I would also take that 500 investment banking jobs number and double it and expand it across the business, certainly until the string of negative quarters comes to an end.
