Wachovia the fourth biggest bank in the US is the latest to join the write down, slash the dividend parade. Clearly there was a lot more bad paper out there than anyone wanted to admit to. So now they must raise more capital and shore up cash by cutting the dividend. We are studying the equity side of the balance sheet in Intermed II, this is a good example of how this affects equity.
Do you think there should be a change in the reporting of the statement? for shareholders the realization that assets were impaired is a bit late, the stock is down sharply and capital still has to be raised.
Professor Elam 
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