Wall Street Journal (04/14/08) P. C1; Enrich, David; Berman, Dennis K.
Burned by the nation's mortgage meltdown, Wachovia Corp. is set to receive a sorely needed capital infusion of $6 billion to $7 billion from outside investors. In exchange, the investor group would get Wachovia stock priced at roughly $23 to $24 per share--a discount of 15 percent to the Charlotte-based bank's share price on April 11. Wachovia's need for capital comes just a couple of months after it raised $3.5 billion through a preferred-stock sale. Since then, though, the banking industry's problems have worsened. First-quarter results will likely show that loan woes are spreading from mortgages to commercial loans and other types of credit, and loan defaults will only increase if the economy sinks deeper into recession.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment