Wachovia Shares Down on 1Q Loss and Dividend Cuts

Wachovia Corp.’s (WB) larger-than-expected first-quarter loss, along with its plan to cut its dividend and sell $7-billion of stock, sent shares of the fourth-largest U.S. bank down more than 10% on Monday. The company's annual dividend was slashed by 41% to $1.50 from $2.56.

The loss of $0.20 per share included an additional $0.15 in one-time gains from private equity mark-to-market gains, as well as gains from Visa Inc.’s IPO, according to RBC Capital Markets analyst Gerard Cassidy. In a note to clients, he said this made Wachovia’s core loss even more pronounced.