Wachovia Q2 08

--NI -8.8 bil loss againt revenue 7.5 bil, much worse than expected --Provision has increased a lot, but allowance % NPA, 90%, still low compared to BAC and C, all above 150% --Risky assets (ABS CDO, subprime, commercial, leveage finance loans) has shrank to ~6bil from 12 bil in Q1 08. But its exposure to pick-a-pay is still a concern. --the delinquencies of 2006 and 2007 vintage of pick-a-pay mortgage has not bottomed out yet. but its 2004 and 2005 vintgage has. opinion --neutral