Wachovia Falls on Downgrade, CFO Exit

Wachovia(WB Quote) dropped nearly 10% Friday after an analyst downgrade and news its CFO was leaving.

Robert Patten of Morgan Keegan slapped a sell rating on the Charlotte, N.C.-based bank following its miserable second-quarter earnings results and concern that the company might have to raise more capital.

Wachovia reported a staggering second quarter loss $8.9 billion earlier this week and said it was cutting its dividend by 86% to 5 cents a share, among other things to preserve capital. Investors had reacted favorably to new CEO Robert Steel's first public comments as Wachovia's head when he said that the bank would not have to raise additional capital in light of the company's internal initiatives it was undertaking. ...