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.

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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

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