Wachovia

By: EconomyWatch   Date: 17 July 2010

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Forbes Global 2000 ranked Wachovia as 50th largest, global public company. Its ranking dropped 15 places from previous position of #35. Wachovia is headquartered in Charlotte, North Carolina.
Wachovia is likely to be taken over by Wells Fargo, plans for which have already been approved by Federal Reserve. Major subsidiaries of this bank include Wachovia Bank, N.A., Wachovia Securities, LLC, Wachovia Mortgage, FSB, and Wachovia Capital Markets, LLC.

Brief history
Wachovia was founded in 2001 as a result of a merger between First Union Corporation and Wachovia Corporation. Wachovia Corporation has a history that goes as far back as June 16, 1879. This bank started off with an initial capital investment of $100,000. From 2001 onwards, Wachovia acquisitions include big names like Prudential Securities, Metropolitan West Securities, SouthTrust, Westcorp, Golden West Financial, and A.G. Edwards.

Products and services
Wachovia offers complete banking services to its clients. It provides retail brokerage services, asset management, and wealth management services to individual customers. Business customers of Wachovia are offered corporate and investment banking services, and treasury services. Other products and services offered by Wachovia include credit and check cards, auto dealer finance, home equity lending, mortgages, and trust services.

Financials
In 2007, Wachovia sales were worth around $48.439 billion. In same year, negative profits of -$33.226 billion were registered by Wachovia. Total assets owned by this bank were worth about $764.378 billion. Nearly 121,890 people are employed with Wachovia.

Awards and recognition
For seven consecutive years, Wachovia has been ranked #1 by American Customer Satisfaction Index. BusinessWeek has also recognized this bank for possessing excellent customer service orientation. Working Mother magazine identified this company as one of US' 100 best companies for working mothers.

Current financial crisis
Wachovia has been seriously affected by global financial crisis. Trouble for Wachovia began to brew with acquisition of Golden West Financial Corp in 2006. With this acquisition, Wachovia had to deal with a more than significant amount of troubled mortgages.


Problems for Wachovia further intensified with seizure of Washington Mutual. Talks were initiated with Wells Fargo, Citigroup, and Spain's Banco Santander for possible acquisition deals. Citigroup was expected to takeover Wachovia. But in October 2008, Wells Fargo made an offer of about $15.4 billion for a buyout, and is now likely to acquire Wachovia.


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