Wachovia Shocker: $1.1B Hit on B&C CDOs

Wachovia Corp. said in a federal filing Friday morning that it will take an additional hit of $1.1 billion on the value of subprime-related collateralized debt obligations it owns.The banking giant said its CDOs declined by that much in October alone. When it reported third-quarter earnings, Wachovia revealed a $1.3 billion pretax charge on CDOs, including $347 million in subprime-related valuation losses. The new charge is in addition to the third-quarter hit. Wachovia, the nation's seventh-largest originator of home mortgages, said its remaining asset-backed security CDO exposure is $676 million. The company blamed the writedowns on rising defaults and delinquencies in the subprime market. Wachovia can be found online at http://www.wachovia.com.