Business & Finance
Business and Finance
Business and Finance
Fri, February 13, 2009
Thu, February 12, 2009 Wells Fargo Announces 4th Quarter 2008 Non-Cash Charge for Preferred Securities
SAN FRANCISCO--([ BUSINESS WIRE ])--Wells Fargo & Company (NYSE:WFC) said today that – as a result of credit events after its January 28, 2009 announcement of year-end 2008 results and before filing its 2008 Annual Report on Form 10-K – it will record other-than-temporary impairment and take a non-cash charge to earnings of $328.4 million (pre-tax) in fourth quarter 2008 for investments in certain perpetual preferred securities.
Because these securities were carried at fair value at December 31, 2008, the loss on these securities was previously reported as unrealized losses on securities available for sale within cumulative other comprehensive income, a component of total stockholders' equity on the Company's balance sheet. The Company expects this charge will reduce full-year 2008 net income to $2,655 million, or $0.70 per common share, from $2,842 million, or $0.75 per share, as previously reported. For fourth quarter 2008, the Company expects the charge to increase its previously reported net loss to $(2,734) million, or $(0.84) per share, from $(2,547) million, or $(0.79) per share. The Company expects to file its 2008 Annual Report on Form 10-K on February 27, 2009.
Wells Fargo & Company is a diversified financial services company with $1.3 trillion in assets, providing banking, insurance, investments, mortgage and consumer finance through more than 11,000 stores, over 12,000 ATMs and the internet (wellsfargo.com) across North America and internationally. Wells Fargo Bank, N.A. has the highest credit rating currently given to U.S. banks by Moody's Investors Service, "Aa1," and Standard & Poor's Ratings Services, "AA+."
