The net loss included a pre-tax goodwill loss of US$18.8 billion that reflects declining market value and the terms of its acquisition by Wells Fargo, Wachovia said in a statement.

The net loss of US$23.89 compared with earnings of US$1.62 billion, or 85 cents per share in the third quarter of 2007.

Excluding exceptional items, Wachovia posted a net loss of US$4.76 billion.

The bank, hard hit by exposure to the subprime mortgage crisis, reported a third-quarter loss per share of 11.09 dollars, compared with earnings per share of 90 cents in the 2007 third quarter.

'Although this has been a challenging quarter, Wachovia's underlying businesses remain solid and our franchise exceptionally attractive. We look forward to the opportunities that lie ahead as we join forces with Wells Fargo,' Robert Steel, Wachovia chief executive and president, said in the statement.

Wells Fargo president and CEO John Stumpf said Wachovia's financial results were in line with his bank's expectations.

'We're more encouraged than ever by what we've seen in their franchise,' Mr Stumpf said in the statement.

Wells Fargo's chief financial officer Howard Atkins said the acquisition was on track to be completed as planned by year-end.

'We believe that it was prudent for Wachovia to put these losses behind them,' Mr Atkins said.

'The asset write-downs, reserve build, and other items are consistent with our acquisition assumptions. The goodwill impairment will have no impact on tangible capital or our planned capital raise.'

The Federal Reserve earlier this month approved Wells Fargo's takeover of Wachovia, a deal which would create the largest bank branch network in the United States. -- AFP