I think this is one of the banks Hicks has secured loans from ( for LFC)
NEW YORK (Reuters) - Wachovia Corp (WB.N) on Tuesday posted an $8.86 billion second-quarter loss, slashed its dividend, and announced 6,350 job cuts after losses tied to mortgages soared.
Its shares fell $1.67, or 12.7 percent, to $11.51 in premarket trading.
The net loss attributable to common stockholders equaled $4.20 per share and compared with a profit of $2.34 billion, or $1.22, a year earlier.
Results included a $6.1 billion write-down of goodwill, and reflected a $4.2 billion increase in reserves for bad loans.
The Charlotte, North Carolina-based bank slashed its quarterly dividend 87 percent to 5 cents per share from 37.5 cents, and has now lowered it 92 percent this year.
Excluding items, the loss was $1.30 per share, compared with the average analyst estimate of $1.27, according to Reuters Estimates.
"These bottom-line results are disappointing and unacceptable," Chairman Lanty Smith said in a statement. "While to some degree they reflect industry headwinds and weaker macroeconomic conditions, they also reflect performance for which we at Wachovia accept responsibility."
Wachovia on July 9 had projected a $2.6 billion to $2.8 billion quarterly loss, equal to $1.23 to $1.33 per share, excluding goodwill items.
The same day, it named former Treasury Undersecretary Robert Steel as chief executive, replacing Ken Thompson, whom it ousted a month earlier.
Steel will try to bolster capital, cut risk and unload troubled assets following Wachovia's disastrous $24.2 billion purchase in Oct 2006 of Golden West Financial Corp, a specialist in option adjustable-rate mortgages.
Through Monday, Wachovia shares had plunged 65 percent this year, compared with a 30 percent drop in the KBW Bank Index (.BKX).
