Wachovia seeking to raise billions

NEW YORK, April 14 (UPI) -- Wachovia Corp. is seeking to raise billions in outside funding to weather the current mortgage crisis, sources close to the bank said.

Wachovia, the fourth largest bank in the United States, has said its finances are sound. But, observers say a risky May 2006 purchase of Golden West Financial, a California mortgage thrift, for $25.5 billion, has soured.

Losses have also risen in recent months in auto loans and credit cards, The New York Times reported Monday.

Citigroup, Merrill Lynch, UBS and other large financial companies have also turned to outside funding, seeking a combined tens of billions, the report said.

Washington Mutual recently raised $7 billion with a tie-in to TPG, an equity firm.

Wachovia has raised $8.3 billion so far in 2008 by issuing preferred stock and other securities, the report said.