I should qualify that by saying, again, that I don't know what Wachovia's overall balance sheet looks like

Wachovia paid $24.2 billion last year for Golden West Financial Corp, a big California mortgage lender.

which suggests that other banks still have a long way to go to come clean...

In the long run, we're all dead. John Maynard Keynes

The capital underlying Wall Street, at the top, is not all that large - a matter of a few hundred billion. Given the piling of risk upon risk that has been engaged in over the last few years, and the size of the losses in the mortgage market alone that seem probable - my own estimate last spring of $980 billion looks increasingly likely to be somewhat below the final figure - it appears almost inevitable that in a bear market in which liquidity dries up and investors become skeptical, Wall Street's capital will be wiped out. Only the commercial banks like Wachovia and Bank of America whose investment banking ambitions have been largely thwarted and whose portfolios of Level 3 rubbish are correspondingly lower, are less likely to disappear.

Level 3 Storm about to hit Wall Street

But that article was published on November 3.  The news about Wachovia came out on the 9th.

Truth unfolds in time through a communal process.