Wachovia adjusts losses, layoffs

Wachovia Corp. has boosted its loss to $9.11 billion and now plans to lay off 6,950 employees, according to an SEC filing. Wachovia originally said last month that the loss would be $8.9 billion, but the higher loss is related to a settlement of state and federal investigations in to auction-rate securities.

Continue reading below

Plus, the bank will terminate 600 more employees than initially planned. The bank also said restructuring costs will total anywhere between $525 million and $650 million.

Wachovia's troubles are often pinned to its 2006 acquisition of Oakland, Calif.-based mortgage lender Golden West Financial Corp. for $25.5 billion.

The mess prompted the board of directors to oust CEO G. Kennedy Thomson in June. Now, Wachovia's new CEO Robert K. Steel is actively building a team to turn around the distressed bank. For a full timeline of Wachovia's troubles, see this Dealwatch. - Maria Woehr

See Wachovia's 10-Q filing
See Dealwatch: Wachovia
See Dealscape: Wachovia: Out with the old, in with the new
See Dealscape: Wachovia reports weary earnings, asset sales

Post a comment

Name:

Email Address:

URL:

Remember personal info?

Comments: (you may use HTML tags for style)

Please only click "Post" once. It may take a few moments to process.

Deal Video

	Inside The Deal: Linklaters' Schmidt says how regulators handled Pfizer Inc.'s acquisition of Wyeth is an outlier of how others merger reviews will be conducted.
More video...

Elsewhere on The Deal.com

Dealwatch

• Kraft Foods Inc.
• BofA-Merrill Lynch
• AIG Inc.
• Yahoo!

The Deal Magazine

• Coyote ugly
• The new super-regionals
• Buyout blackball?
• Too big to flail

Corporate Dealmaker

• GM revamps Opel management for restructuring
• Linklaters' Schmidt on Pfizer-Wyeth review
• Exxon has a JV in what?
• JAL talks with Delta, American heat up

The Deal Video

• NYSE Euronext's Cutler on hot week for IPOs
• Financial services tech firms attract investors
• Oppenheimer's Heinberg on a CIT Group bankruptcy
• Technology M&A's tipping point

Categories

• Bankruptcy
• Corporate restructuring
• Deal international
• Dealmakers
• Featured
• IPOs
• M&A
• Middle market
• Law & regulation
• Private capital
• Conferences
• Technology

Blog roll

• BloggingBuyouts
• BloggingStocks
• Dealbook
• DealBreaker
• Deal Journal
• FT Alphaville
• footnoted.org
• Going Private
• peHUB
• Reuters Dealzone
• SEC Investor
• Prince Of Wall Street
• Bankruptcy Bill
• Information Arbitrage

Archives

• November 2009
• October 2009
• September 2009
• August 2009
• July 2009
• June 2009
• May 2009
• April 2009
• March 2009
• February 2009
• January 2009
• December 2008
• November 2008
• October 2008
• September 2008
• August 2008
• July 2008
• June 2008
• May 2008
• April 2008
• March 2008
• February 2008
• January 2008
• December 2007
• November 2007
• October 2007
• September 2007
• August 2007
• July 2007
• June 2007
• May 2007
• April 2007
• March 2007
• February 2007
• January 2007
• December 2006
• November 2006
• October 2006
• September 2006
• August 2006
• July 2006
• June 2006
• May 2006
• April 2006
• March 2006
• February 2006
• January 2006
• December 2005