Published on Tuesday, July 22, 2008
By Pasadena Star Staff Writer
The Associated Press
WASHINGTON - Treasury Secretary Henry Paulson spent another day stumping for the U.S. banking system, declaring Tuesday that his top priority was ensuring "stability and confidence in our markets and financial institutions."
However, those soothing words had to confront the reality of more massive losses in the financial sector.
Wachovia Corp., the nation's fourth-largest bank, reported that it had lost $8.86billion in the second quarter due to soaring bad mortgage debt. It said it would slash its dividend and eliminate 10,750 positions.
And Washington Mutual, the nation's largest savings and loan, reported it lost $3.33billion in the April-to-June quarter. WaMu, one of the institutions hardest hit by the meltdown in the mortgage market, said it had increased its loan loss reserves by $3.74 billion to a total of $8.46 billion to cover bad loans
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