ETrade and Wachovia may have write off half of their mortgage backed securities – the mortgage meltdown continues
Fred Day
Nov. 10, 2007

The real estate market is dragging mortgage securities market to its knees. Wachovia and Etrade are clearly the most visible casualties after Merrill and Citibank. While the real biggies may take time to capitulate, Wachovia and Etrade are in real troubles in spite of casual behavior from these financial institutions.

ETrade Financial Corp. late Friday said it expects to record further write-downs on its $3 billion in mortgage-backed securities holdings in the fourth quarter.

Wachovia plans to take an additional $1.1 billion in write-downs on certain risky securities. Bank of America warned it will continue to be "adversely impacted" by market conditions.

The mortgage meltdown now has crossed over from subprime to prime side of the business. That is most significant because while the subpime can be the tip of the iceberg, the prime side of the business can make financial institutions go belly up one after the other.

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ETrade and Wachovia may have write off half of their mortgage backed securities – the mortgage meltdown continues
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While the real biggies may take time to capitulate, Wachovia and Etrade are in real troubles in spite of casual behavior from these financial institutions.
READ MORE>>

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