July 22, 2008
Wachovia, Other U.S. Banks Post Dismal Results
Filed at 5:34 p.m. ET
NEW YORK (Reuters) - Wachovia Corp and Washington Mutual Inc led several large U.S. banks in posting weak second-quarter results on Tuesday, hurt by soaring losses from mortgages and other debt.
Wachovia reported a $8.86 billion loss, while Washington Mutual said it lost $3.33 billion. Two Ohio-based regional banks, Fifth Third Bancorp and KeyCorp , also posted losses. Southeast regional banks Regions Financial Corp and SunTrust Banks Inc each said profit fell.
. . . Wachovia shares closed up 27.4 percent, Fifth Third up 11.7 percent, KeyCorp up 4.3 percent, SunTrust up 16.2 percent, Regions up 9.6 percent and Washington Mutual up 6.2 percent.
Well, I don't know what to say about that, except that the news today that Fannie Mae and Freddie Mac might need as much as a $25 billion bailout by American taxpayers, ought to make them this week's high-flyers.
They have to be careful that Wachovia doesn't beat them to the starting-gate, much less the finish-line. Is there a finish-line? Or do these ponies just keep on running until someone shoots them all?
Does anyone know where understandable stock markets have gone to?