Wachovia Corporation said on Monday that it has launched an emergency $7bn fund raising to boost its capital position after it reported a $350m first quarter net loss.
“We are taking appropriate and prudent actions to further enhance our capital position in response to unprecedented economic conditions,” said Ken Thompson, Wachovia's chairman and chief executive officer.
He added: “These actions will significantly increase our capital ratios, and enhance our ongoing financial flexibility. We're extremely pleased with the strong expressions of interest we've already received regarding these issuances, which demonstrate the confidence of investors in our fundamental strengths and long-term outlook.”
Reports are circulating that Warburg Pincus may be willing to take a stake in the stricken bank.