NEW YORK (Reuters) - The U.S. credit crisis deepened on Friday as Wachovia Corp reported a $1.1 billion (530 million pound) loss on subprime mortgage-related debt in October, while Capital One Financial Corp said more customers are missing payments.
The news helped cause losses in broader market indexes, on expectations that write-downs and bad loans will mount, and perhaps plunge the economy into recession.
"This is now worse than Long-Term Capital (Management)," said Jack Malvey, chief global fixed-income strategist at Lehman Brothers Inc., referring to the hedge fund whose 1998 collapse threatened to unhinge global financial markets. "This is a painful lesson in financial engineering."
Reuters
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