WaMu Collapse Adds to Wachovia, NatCity Jitters

Published September 26, 2008, 1:00 p.m. EDT

1 Min Read

Wachovia Corp's stock price slid 27% Friday as investors worried about the company's portfolio of payment-option adjustable-rate mortgages and the uncertainty regarding financial bailout legislation. At the close of trading on Friday, Wachovia's shares were trading at $10.00, down $3.70 from the opening price. Wachovia has an option ARM portfolio that averaged $122 billion in size during the second quarter. National City Corp. also saw its shares tumble on Friday, closing at $3.71, down 26% on the day. Trading volume was more than 10 times higher than the company's average daily volume. National City does not have significant option ARM exposure, but it does have significant mortgage, home equity, and construction loan exposure.

Processing Content

For reprint and licensing requests for this article, click here.

MORE FROM NATIONAL MORTGAGE NEWS

Title insurance

Title agent accused of rebranding to evade fraud penalty

First American claims Liberty National's owner changed the company's name immediately after a judge held her firm liable for an erroneous wire transfer.

By Spencer Lee
Technology Reporter

May 8
Earnings

Loandepot files $250 million shelf registration

Lender and servicer Loandepot, reeling from a larger loss in the first quarter, could use the potential funds to cover daily operations or repay debt.

By Andrew Martinez
Reporter

May 8
M&A

eXp expands platform with acquisition of NextHome

Alongside its cloud-based brokerage, the company said the acquisition will transform eXp's existing infrastructure into a multi-model platform.

By Colin McNamara
Reporter

May 8
Servicing

New Cantero escrow ruling backs preemption in split decision

The opinion that supports national banks' ability to avoid paying interest on certain mortgage accounts in New York is unlikely to be the last word.

By Bonnie Sinnock
Capital Markets Editor

May 8
M&A

CrossCountry raises its Two Harbors bid to $12 per share

The latest offer, 70 cents per share higher than previously agreed to, equals the cash proposal made by UWM Holdings to win over Two Harbors' shareholders.

By Brad Finkelstein
Originations Editor

May 8
Employment data

Economy added 115,000 jobs in April despite mixed signals

Employers hired an additional 115,000 workers in April, while unemployment remained unchanged at 4.3%. Despite the positive headline figure, a spike in newly unemployed workers and a rising number of underemployed workers suggests instability under the surface.

By Ebrima Santos Sanneh
Reporter

May 8

Load More