Write downs

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Apr 14, 2008 4:25 am

Why hasn't Wachovia had as many write downs as some of the others on the street? I hope this isn't an overly simplistic topic, but I haven't heard or read anything about significant write downs and they are the only competitor in my area. Thanks!

Apr 14, 2008 1:59 pm

they have not written down per se but rather increased their reserves for bad loans/mortgages. just a different spin for the most part.

Apr 18, 2008 8:13 am


If you stand back and look at the big picture, how ludicrous was it that bankers, of all people, actually thought that it was prudent to lend to increasing numbers of people, using dramatically reduced credit underwriting standards, backed up by collateral that was elevated 3-4 standard deviations above long term price appreciation.  Paul McCulley has some good observations here:

http://norris.blogs.nytimes.com/2008/04/17/ponzi-squared/

Apr 18, 2008 8:53 am
And now they have subprime losses...  so is your question answered? If you're asking this question for the reason I think you are and that's so that you can somehow pitch against them, be careful.  Trashing another firm usually isn't the best way to go about it.  Look at the huge writedowns everyone else is having.  It's not causing significant outflows in their wealth management business.  Where I am, everyone thought that when Bear was bought that it would be like shooting fish in a barrel.  So they started calling all of the prospects they knew had BS brokers but it wasn't quite as easy as anticipated.
 
Financiallady:

Why hasn't Wachovia had as many write downs as some of the others on the street? I hope this isn't an overly simplistic topic, but I haven't heard or read anything about significant write downs and they are the only competitor in my area. Thanks!