In recent months many corporations have been to make major cutbacks, change the operating polices, and some have been forced to close their doors for good as a result of many financial and economic disasters that occurred in the proceeding years. While news has been made about corporations such as Circuit City and Linen ‘n Things filing for chapter 7 bankruptcy some of the most unexpected financial crisis have come major financial instiutions such as Wachovia. As a result these corporations have been forced to merge, plead for government assistance, ans possibly close their doors for good. IN this paper we’re going to discuss the financial criis that Wachovia experienced in 2008 and some possibilities they may need to look into.
Wachovia is a financial institute that provides multiple services including asset and wealth management, corporate investment banking products and services, individual services and products, brokerage, and retail banking. With more than 100,000 employees, branches in 21 states, and more than 40 international offices Wachovia Bank is one of the largest American financial institutions. Wachovia, which is the latin dialect for the Austrian word, Wachau, was founded in 1879 operating under the name of Legacy Wachovia Corporation. The company’s headquarters is based in Winston-Salem, North Carolina and gradually became one of the largest banks within the Southeast of America. It wasn’t until 2001 that Wachovia would become a major player in the financial industry across America. On September 1, 2001 Wachovia was aquirered by First Union Corporation. Both companies found the merger fortuitous as Wachovia had found itself in some financial trouble due to poor profit earnings and poor credit quality and First Union Corporation benefited from operating under the Wachovia name as would behoove their popularity amongst consumers. Unlike some of Wachovia’s previous merger their merger with First Union was extremely successful and helped to launch the corporation has been ranked as number one under customer satisfaction amongst according to a study done by University of Michigan. However, since then the corporation has fallen into additional financial troubles due to the economy. Therefore, in December 31, 2008 Wachovia was no longer an independent corporation as it was purchased by Wells Fargo. The financial plan is to slow phase out the Wachovia name and incorporate it into the Wells Fargo brand by 2011.
Company board of directors, management and trusted advisors
Board of Directors
NameAgeGenderTitleMember Since BackgroundPhoto
Lanty L. Smith1942MaleChairman1987Served as lead independent director of Wachovia Corporation from 2000 - 2008 when he was named chairman and interim executive officer from June 01, 2008 until July 09, 2008. Currently is chairman and chief executive officer of Tippet Capital, a merchant banking firm headquartered in Raleigh, N.C.
John D. Baker, II1948MaleCommittee2001Pesident and chief executive officer of Patriot Transportation Holding, Inc., Jacksonville, Florida, a motor carrier, flatbed transportation hauler and real estate management company.
Peter Browning1941Male2001Lead director of Nucor Corporation, a steel products manufacturing company in Charlotte, N.C. Previously, he was non-executive chairman of Nucor and dean of the McColl Graduate School of Business, Queens University of Charlotte.
John T. Casteen, IOII1943MaleCommittee2001John T. Casteen has been president of the University of Virginia, Charlottesville, Virginia, since 1990. He served on the faculty of the University of California-Berkeley until 1975, when he became a dean at UVa. Casteen also has served as Virginia’s education secretary and president of the University of Connecticut.
Jerome Gitt1943Male2006Jerry Gitt is a retired securities analyst from Merrill Lynch & Company, where he served as first vice...