Wachovia to Raise $7bn As Wall Street Feels More Pain ; Credit Crunch

Summary

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AMERICA'S fourth-largest bank Wachovia is to raise $7 billion ([pounds]3.5 billion) in new capital via share issues and has slashed its dividend after taking a bigger-than-expected subprime hit in its first quarter.

The news came as two of Wall Street's largest players are set to announce more pain from the credit crunch. Citigroup and Merrill Lynch are expected to unveil writedowns totalling as much as $17 billion on subprime-related loans and investments for their first quarters.

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Wachovia to Raise $7bn As Wall Street Feels More Pain ; Credit Crunch

Wachovia, based in Charlotte, Carolina, said it lost $350 million...

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