Wachovia Estimates $1.1B in Oct. Losses

Another day, more writedowns on Wall Street.

Wachovia Corp. on Friday became the latest major financial institution to warn of mounting losses in the credit markets, saying the value of securities it owns that are backed by loans sank by about $1.1 billion in October.

The nation's fourth largest banking company also said it plans to boost its allowance for loan losses in the fourth quarter due to expected credit deterioration in the housing market in certain regions. The provision is pegged at $500 million to $600 million in excess of charge-offs in the quarter.

Wachovia shares dropped 45 cents to $39.85 in afternoon trading Friday after sinking …