Wachovia quitting wholesale mortgages

July 22, 2008

Wachovia Corp. said yesterday that it is leaving the wholesale mortgage lending business. Beginning July 25, the company will no longer offer mortgages through brokers, joining other lenders making similar moves to leave the troubled sector. Rival Bank of America got out of the business several months ago. Wachovia didn't disclose how many jobs will be cut as a result of the change. More details are expected today when the bank releases its second-quarter earnings. Shares of Wachovia dropped more than 5 percent in after-hours trading after the announcement.

This column was compiled from dispatches by Sun reporters, the Associated Press and Bloomberg News.