| Wachovia warns on loss
Several of the nation's leading banks warned yesterday that the subprime lending crisis will contribute to another round of losses in the fourth quarter, a sign that fallout from the housing and mortgage-lending slump is spreading deeper into the nation's credit markets.
Wachovia Corp. began the day by writing down the value of its loan-backed securities by about $1.1 billion, and was followed by Bank of America Corp. and JPMorgan Chase & Co., which both said their fourth-quarter results would suffer - although neither bank quantified any potential markdowns in filings with the Securities and Exchange Commission.
Financial services provider E*Trade Financial also said yesterday it expects the value of its asset-backed securities to continue to drop in value, while credit card leader Capital One Financial Corp.
Writedowns will hurt fourth quarter
Another day, more writedowns on Wall Street. Several of America's leading banks warned yesterday the subprime lending crisis will contribute to another round of losses in the fourth quarter, a sign that fallout from the U.S. housing and mortgage-lending slump is spreading deeper into the country's credit markets. Wachovia Corp. began the day by writing down the value of its loan-backed securities by about $1.1 billion (U.S.), and was followed by Bank of America Corp. and JPMorgan Chase & Co., which both said their fourth-quarter results would suffer – although neither bank quantified any potential mark downs in filings with the U.S. Securities and Exchange Commission. Financial services provider ETrade Financial also said it expects the value of its asset-backed securities to continue to drop in value, while credit-card leader Capital One Financial Corp.
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JPMorgan anticipates more credit-crisis losses
NEW YORK -- JPMorgan Chase & Co. warned yesterday that it might have to write down more of its loan portfolio in the fourth quarter as a feeble economy and the growing credit crisis continue to rattle some of the financial industry's biggest names. JPMorgan did not quantify how much it intends to mark down its portfolio during the fourth quarter in its filing yesterday with the Securities and Exchange Commission. The bank said it also expects quarterly losses related to its home-equity portfolio to increase during the next few quarters by $250 million to $270 million per quarter -- a charge-off rate of 1.05 percent to 1.10 percent. It added that the charge-off rate in credit-card services is rising to "a more normal level." A charge-off generally occurs when a debt is deemed uncollectible and is written off.
Permit to issue Mexican ID cards revoked
The Mexican Consulate's trip to Lafayette this weekend to issue a controversial identification card to Mexican nationals may not happen because local officials have revoked the consulate's permit to operate in a Lafayette government facility. City Parish-President Joey Durel along with U.S. Senator David Vitter, R-Metairie, announced Thursday that the city was revoking the consulate's permit, which would have allowed them to operate out of the Clifton Chenier Center this Saturday and Sunday. The consulate planned to issue matricula consular identification cards, a non-U.S. issued form of ID for Mexican nationals. .
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