Wednesday, October 22, 2008

Earnings Roundup 10/22/2008

The Good:
The bad:
The disastrous:
  • Wachovia posted a $23.9 billion third-quarter loss on what I call "finally figuring out that your assets are virtually worthless."  It's interesting that the bank had to be on the verge of seizure by the FDIC before noticing that its goodwill was overvalued by around $18.7 billion.  My thoughts on Wachovia's toxic portfolio have been expressed for many months here, so I can finally stop warning investors about the risks.  I wish Wells Fargo much luck with its acquisition and sincerely hope that a $72 billion write-down is enough to make it a worthwhile purchase.

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