Wachovia: housing downturn far from over

CHARLOTTE (AP) — The chief risk officer at Wachovia says the downturn in the nation’s housing market is far from over. Don Truslow told analysts on a Deutsche Bank Securities conference call today that it feels like the downturn has a ways to go.

Truslow says he doesn’t know if the downturn is in the third, fourth or fifth inning, using a baseball analogy.

Charlotte-based Wachovia has faced scrutiny for expanding in the mortgage business at the peak of the housing market. It acquired California-based mortgage specialist Golden West Financial for $24 billion in 2006.

Wachovia said last month it expects to set aside more money for bad loans. The bank took more than $3.2 billion in write-downs in the second half of 2007 because of the falling value of certain complex investments.

(Copyright 2008 by The Associated Press. All Rights Reserved.)