Washington Mutual Inc. said Tuesday it lost more than $3 billion during the second quarter as it increased its loss reserves to more than $8 billion to cover souring mortgage loans.
For the April to June period, the bank reported a loss of $3.33 billion, or $6.58 per share, compared with a profit of $830 million, or 92 cents per share, in the year-ago period. Results include a one-time reduction of $3.24 per share related to the company’s $7.2 billion capital raise.
Wachovia cuts dividend, eliminates 10,750 jobs
Wachovia, the nation’s fourth-largest bank, racked up an $8.86 billion loss in the second quarter because of charges and reserves for bad mortgage loans.
The bank also cut its dividend for the second time this year and eliminated 10,750 positions, including those held by 6,350 current workers.
Wachovia’s results, coming before trading began on Wall Street, initially sent financial and other stocks falling.
The stock market revived as the price of oil skidded again, and so Wachovia’s stock rose 27 percent.
Yahoo profit drops by 18 percent
Yahoo Inc.’s second-quarter profit fell 18 percent, the latest sign of the financial decay that has frustrated shareholders and raised doubts about the Internet company’s future.
But while the results released Tuesday missed analyst expectations, the performance wasn’t as bad as many investors had feared after Internet search and advertising leader Google Inc.’s second-quarter earnings disappointed Wall Street last week.
Yahoo shares edged up 5 cents in extended trading after slipping 27 cents.
Ambassadors Group posts decline in earnings
Spokane-based Ambassadors Group Inc. reported earnings of 89 cents per share for the second quarter, a 15 percent drop from the same period last year.
Net income was $17.2 million, compared to $20.9 million for the second quarter of 2007. Fully diluted per-share earnings decreased to 60 cents in the first six months of the year, down from 79 cents a year earlier.
The company arranges student and professional group travel. In the first half of the year, the company had about 21,250 travelers, a 16 percent decrease from the same period in 2007.
From staff and wire reports