Wachovia Corp, the fourth-largest U.S. bank, said on Friday that it had incurred about $1.1 billion of further losses in October from credit market turmoil.
The company said the pretax value of its asset-backed securities collateralized debt obligations declined by that amount in October. It took a $1.3 billion write-down from the turmoil in the third quarter.
Wachovia also expects increased loan losses in the fourth quarter. The bank sees fourth-quarter loan loss provisions of $500 million to $600 million in excess of charge-offs.
Large U.S. banks have been battered by mounting consumer loan losses as the housing market slumps, and sinking investor demand for mortgages and other debt.
(Reporting by Franklin Paul and Michael Erman; Editing by Lisa Von Ahn)