The news at a glance

Wachovia: First-quarter loss stuns investors; Takeovers: Japanese buy biotech firm; Pharmaceuticals: A boost for Novartis’ bone drug; Trade: House stalls Colombia trade deal; Credit crisis: International action unlikely

Wachovia: First-quarter loss stuns investors

Wachovia, the fourth largest U.S. commercial bank, startled investors this week with a first-quarter loss of $393 million, said Eric Dash in The New York Times. The bank blamed “mounting housing losses,” coupled with an ill-timed acquisition of a big California mortgage lender. Wachovia bank said it would slash its quarterly dividend 41 percent, to 37.5 cents a share, and raise $7 billion in fresh capital by selling new common and preferred shares. “I know these actions are not without costs,” said Wachovia CEO Kennedy Thompson, “and I wish they were not necessary.”

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE
https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up
To continue reading this article...
Continue reading this article and get limited website access each month.
Get unlimited website access, exclusive newsletters plus much more.
Cancel or pause at any time.
Already a subscriber to The Week?
Not sure which email you used for your subscription? Contact us