by Calculated Risk on 4/14/2008 09:03:00 AM

From the WSJ: Wachovia Swings to Loss, Plans to Raise Capital

Wachovia Corp. said it will raise $7 billion in capital through stock sales and cut its dividend by 41% ...

The infusion represents Wachovia's second dip into the capital trough this year. ... The second round is a sign that banks' fortunes have continued to deteriorate over the past month. ... many observers believe that this is the beginning of the troubles for regional banks ...

Credit-loss provision were increased to $2.83 billion from $177 million as net charge-offs soared to 0.66% of average net loans from 0.15%. Nonperforming assets, those loans near default, ballooned to 1.70% of loans from 0.42%.

The regional banks are now lining up at the confessional.