Washington Post (04/15/08) P. D1; Tse, Tomoeh Murakami
Wachovia Bank's $350 million loss in the first quarter might be a sign that the worst of the credit crunch has not passed. The Charlotte-based bank, which posted a $2.3 billion gain a year ago, also set aide $2.8 billion for expected losses from loans it has made to consumers and businesses. There are some concerns among investors that the upcoming earning reports from the commercial banking industry will begin to reveal similar damage from the declining housing markets and the spread of the subprime mortgage crisis into prime residential mortgages. "Results will be very weak to disastrous, depending upon each entity's exposure to the troubled credit areas," says RBC Capital Markets banking analyst Gerard Cassidy.
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