by Calculated Risk on 7/22/2008 11:49:00 AM

Can you say "credit crunch"? From Wachovia:

On page 26 we talk about some other aspects with regard to $20 billion reduction of loans and securities. We are focused on the reinvestment of securities and lean toward very little reinvestment of maturing securities. We will also have enhanced discipline with regard to commercial lending to be sure we are focused on our very most important strategic relationships. New return targets [have been established] for renewals and new commitments to insure we are using our capital in the most judicious fashion. Active programs to further enhance the mix of our consumer loan portfolios by reducing mortgage concentration through tightening standards, discontinuing negative am option loan originations, eliminating the general bank wholesale channel and eliminating the focus on pick a pay mortgage retention..we have additional measures of enhanced pricing in the auto portfolio and continuing to review noncore assets.

Also see the Pick-a-Pay analysis on page 15. Wachovia is now projecting house prices will bottom in mid-2010.

Reader Brian suggested the post title. thanks!