Wachovia had $8.9 billion net loss

CHARLOTTE, N.C., July 22 (UPI) -- North Carolina-based bank Wachovia announced a series of internal changes Tuesday following a second quarter net loss of $8.9 billion.

Wachovia said it would raise $5 billion in a series of steps that included cutting dividends for common stock to 5 cents per share, "which will conserve approximately $700 million."

The bank also said it was cutting 10,750 jobs and stopping its practice of writing mortgages through third-party brokers, the Charlotte Observer reported.

In a statement, bank Chairman Lanty Smith said, "these bottom-line results are disappointing and unacceptable."

"While to some degree they reflect industry headwinds and weaker macroeconomic conditions, they also reflect performance for which we at Wachovia accept responsibility."

The bank recently admitted it was a mistake to purchase Golden West Financial Corp., a California mortgage lender it acquired in 2006, not long before the housing market turned sour.

"In the short term, the entire organization is focused on protecting, preserving and generating capital, reinforcing Wachovia's strong liquidity position; and reducing risk," said Wachovia President and Chief Executive Officer Robert Steel.