Wachovia Nearly Doubles its First-Quarterly Loss from Previous Report
The fourth-largest U.S. bank, Wachovia Corp, nearly doubled its previously reported first-quarter loss because of a write-down on three contracts in a bank-owned life insurance portfolio.
The bank is now reporting a net loss available to common stockholders of $708 million, or 36 cents per share. On April 14, it reported a loss of $393 million, or 20 cents per share.
Wachovia said it increased the loss by $315 million after reviewing $360 million of stable value agreements provided by a third-party guarantor. It said it may realize benefits from these agreements as gains in future quarters.
Bank-owned life insurance can insure against the lives of employees and directors. Proceeds help offset the cost of providing employee benefits, and help banks manage risk.
Wachovia disclosed the increased loss in a U.S. Securities and Exchange Commission filing.
The loss is the latest blow for the Charlotte, North Carolina-based bank.
Published on May 6, 2008
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