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 (NYSE:NYT) 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 (NASDAQ:DIMEZ) 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.