Wachovia to loses $9 Billion: to cut 6,350 jobs (sell, companies, interest)

[DAP443]

Wachovia Quarterly Losses Near $9 Billion | U.S. News & World Report

[Sage of Sagle]

True. But I just was reading on WSJ.com that Wachovia stock is up 27.4% on the news since investors think this will put them past their biggest problems and move them toward profitability.

This plus BofA's 13% stock price jump means that 4 of 5 of America's top banks are showing signs of having weathered the worst of it....

I'm no analyst, just a lay person who reads up on financial news, but to ME it seems that we have several months of volatility remaining but things are starting to stabilize in sectors that were hard hit for the last several quarters...

[Nor'Eastah]

Wachovia and WaMu are both toast. Their stock may rise and dip this summer on thin trading, but the fireworks will begin this fall. Should really be something to watch.

Meanwhile, don't get caught in any sucker's rally. Financials are dangerous right now, and nowhere near putting in a bottom.

[sterlinggirl]

Does anybody remember the good old days whena nine billion dollar loss and layoffs in the thousands sent stocks down instead of up?

[HappyTexan]

Originally Posted by sterlinggirl

Does anybody remember the good old days whena nine billion dollar loss and layoffs in the thousands sent stocks down instead of up?

Yeah..in fact all that bad news today of dismal earnings sent the market up over 100 points !

[Sage of Sagle]

Again, forgive me if this sounds really uninformed, but don't massive layoffs normally help a company save billions? Isn't a bloated payroll and too many facilities/branches one of the things that hurts banks?

[DAP443]

Originally Posted by Sage of Sagle

Again, forgive me if this sounds really uninformed, but don't massive layoffs normally help a company save billions? Isn't a bloated payroll and too many facilities/branches one of the things that hurts banks?

Actually, it can (as well as putting subsidiaries on the market). Pretty much happened to Ford. They laid off several thousand workers and decided to sell Land Rover and Jaguar. At the time some other company bought, Ford revenues increased by $800 million.

[ViewFromThePeak]

Originally Posted by Sage of Sagle

Again, forgive me if this sounds really uninformed, but don't massive layoffs normally help a company save billions? Isn't a bloated payroll and too many facilities/branches one of the things that hurts banks?

If they can still conduct operations with the remaining staff.

[Sage of Sagle]

What I saw was WaMu was everywhere...more branches that were at all needed. If I can exit my neighborhood, and I have to choose which bank branch to go to via convenience, that (to me as a business owner) means they're redundant. So I see that economists have unemployment pegged to go as high as 6.5% as jobs are shed for companies to try to turn profitable, but provided that people don't freak out if they actually have to drive 5 minutes to the branches that remained open, they're fine...

Will be interesting to see how much Wachovia and other banks lose in Q3 and Q4 2008 after these cuts...

[gregandvicky]

If a person has a Wachovia Securities account, not cash, just equities and no Wachovia stock, just a brokerage account, can this be effected if Wachovia Bank has problems.

I assume that securities held in someones name by Wachovia Securities are safe and far as the equities themselves stand, as far as Wachovia Bank problems go, this should not effect brokerage accounts???????????

Who would be best to simply house investments with less than 3 trades a year?

I understand some have no fees with certain account balances.