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July 15 (Bloomberg) — Wachovia Corp. fell 7.7 percent after saying it’s “a fundamentally strong and stable company on solid footing.”
Wachovia has $150 billion in liquidity, spokeswoman Christy Phillips Brown said today in an e-mailed statement. The bank attracted $800 million in deposits yesterday and remains well capitalized with more than $50 billion in [...]

Morgan Stanley cut its rating on Bank of America Corp (BAC.N: Quote, Profile, Research), and lowered its 2008 earnings view for large-cap U.S. banks saying the banks may have to raise additional $51 billion in capital and record further loan losses.
Analyst Betsy Graseck downgraded Bank of America to “underweight” from “equal weight” and said the [...]

CHARLOTTE, N.C., July 10 (UPI) — Wachovia Corp. (AMEX:AWO)’s chairman and new chief executive officer said the U.S. bank had made a mistake buying California firm Golden West Financial Corp.
“There’s been a complete recognition at the board level that Golden West was a mistake and that we have to deal with the consequences of it,” [...]

NEW YORK (Reuters) - U.S. bank stocks plummeted to their lowest level in more than a decade on Monday after analysts’ forecasts for soaring credit losses convinced investors that next week’s quarterly earnings reports could fall short of already low expectations.
The shares of Citigroup Inc (C.N: Quote, Profile, Research), Bank of America Corp (BAC.N: Quote, [...]

UBS, the European bank most affected by the US subprime crisis, surprised the market yesterday by saying it may be saved by a 3bn Swiss francs (€1.9bn) tax credit from posting a loss in the second quarter.
Some analysts estimated the Swiss bank, which has written off almost 38bn francs (€23.6bn) from its [...]

Happy Independence Day. Reader Tsky pointed out this Reuters story in the comment section, and it’s worth a post: “A lawsuit filed by a Wisconsin couple against their mortgage lender could have major implications for banks should a U.S. appeals court agree that borrowers can cancel their loans en masse when [...]

LOS ANGELES (AP) — Citibank is suing Ed McMahon, seeking to recoup nearly $200,000 lent to the financially strapped Hollywood icon, court records show. Citibank filed the lawsuit against McMahon in Los Angeles Superior Court on June 9, according to the documents. The bank’s suit seeks at least $179,687 in damages as well as attorney’s [...]

APPLYING FOR FINANCIAL aid often triggers apprehension in college-bound students and their parents, but today’s crisis in the educational loan industry has only escalated fear and anxiety.
Ben Miller, who writes for Ed Policy Watch, claims, “to date there haven’t been any reported cases of students being unable to obtain a Federal Family Educational Loan (FFEL). [...]

 
By Evelyn Juan and Marshall Eckblad
Of DOW JONES NEWSWIRES
Wachovia Corp.’s (WB) interim CEO, Lanty Smith, told employees that the troubled bank, which needs to conserve capital as it faces mounting losses from souring mortgages, will begin a companywide effort to reduce expenses.
Smith announced the broad cost-cutting measures in a memo dated Friday; a copy was [...]

The layoffs of 7,500 people will come after the acquisition of Countrywide is completed next week.
By . Scott Reckard, Los Angeles Times Staff Writer

Bank of America Corp. said Thursday that it planned to slash 7,500 jobs over two years as a result of its acquisition of Countrywide Financial Corp., which is scheduled to close next [...]