Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options. HOMEPAGE

Wachovia (WB) May Dump Money Management Arm To Raise $15 Billion

wachovia_logo.jpgAnother day, another rumor. New Wachovia (WB) CEO Bob Steel may offload WB's securities division, which consists of A.G. Edwards and Evergreen Mutual funds. Other supposed targets for the axe are the bank's Northeast and Texas retail branches.

After an $8.9 billion loss in Q2, Steel pledged to sell "non-core" assets, promising a review to be completed in a few months. Given WB's lack of scale in Texas and the Northeast, retail branches in those region might be good candidates for spinoffs. Bloomberg:

Advertisement

Steel is more likely to sell parts of the retail banking business, said Anton Schutz, president of Mendon Capital Advisors Corp. in Rochester, New York, which manages about $150 million in assets. Regions such as New York and Texas, where Wachovia doesn't have major market share, could be carved off, he said...

Analysts think that Wachovia's capital management arm could fetch up to $15 billion, which could provide a crucial cushion against further writedowns:

Wachovia's capital management unit could fetch $10 billion to $15 billion, CreditSights Inc. analyst David Hendler said in a July 22 report, based on annualized earnings of about $1 billion.

See Also: Wachovia (WB) Conference Call Notes
Wachovia (WB) Takes $9 Billion Kitchen Sink Loss
Well Fargo (WFC) To Acquire Wachovia (WB)?

 

Financial Services
Advertisement
Close icon Two crossed lines that form an 'X'. It indicates a way to close an interaction, or dismiss a notification.

Jump to

  1. Main content
  2. Search
  3. Account