Wachovia Corporation
Type	Public (NYSE: WB)
Founded	1908[1]
Headquarters	Charlotte, North Carolina
Key people	Lanty Smith, Chairman/Interim CEO
Industry	Finance and Insurance
Products	Financial Services
Revenue	▲US$55. A public company usually refers to a company that is permitted to offer its registered securities ( Stock, bonds, etc The New York Stock Exchange ( NYSE) is a Stock exchange based in New York City. Year 1908 ( MCMVIII) was a Leap year starting on Wednesday (link will display the full calendar of the Gregorian calendar (or a Leap year For other uses of this term see Industry (disambiguation An industry (from Latin industrius, "diligent industrious" Financial services refer to services provided by the finance industry. In Marketing, a product is anything that can be offered to a Market that might satisfy a want or need Financial services refer to services provided by the finance industry. In business revenue or revenues is Income that a company receives from its normal business activities usually from the sale of goods and services The United States dollar ( sign: $; code: USD) is the unit of Currency of the United States; it has also been 5 billion (2007)[2]
Net income	▼US$$6. Net income is equal to the Income that a firm has after subtracting costs and Expenses from the total Revenue. The United States dollar ( sign: $; code: USD) is the unit of Currency of the United States; it has also been 3 billion (2007)[3]
Employees	122,000[1]
Website	wachovia.com

One Wachovia Center headquarters in Charlotte, North Carolina

Wachovia Corporation (NYSE: WB), based in Charlotte, North Carolina, is the fourth largest banking chain in the United States based on total assets. Employment is a Contract between two parties, one being the employer and the other being the employee. A website (alternatively web site or Web site, a back-construction from the Proper noun World Wide Web) is a collection of Web pages One Wachovia Center is a skyscraper in Charlotte, North Carolina. The New York Stock Exchange ( NYSE) is a Stock exchange based in New York City. A banker or bank is a Financial institution whose primary activity is to act as a payment agent for customers and to borrow and lend money The United States of America —commonly referred to as the ^[4] Wachovia is a diversified financial services company that provides a broad range of banking, asset management, wealth management, and corporate and investment banking products and services. Financial services refer to services provided by the finance industry. Wealth Management is an advanced investment advisory discipline that incorporates Financial planning and specialist financial services Investment banks profit from companies and governments by raising money through issuing and selling Securities in the Capital markets (both equity and It is one of the largest providers of financial services in the United States, operating financial centers in 21 states and Washington, D. C. , with locations from Connecticut to Florida and west to California. ^[1] It also serves retail brokerage clients under the name Wachovia Securities nationwide as well as in six Latin American countries, and investment banking clients in selected industries nationwide. Wachovia provides global services through more than 40 offices around the world.

Corporate information

Wachovia is divided into four divisions: General Bank, Wealth Management, Capital Management, and Corporate and Investment Banking.

The general bank services retail, small business and commercial customers. The bank is number two by national deposit market share. Wealth management serves the high net worth, personal trust, and insurance business. Wachovia is the fourth largest wealth manager in the United States. Capital management provides asset management, retirement, and retail brokerage services. Wachovia is currently the third largest full service retail brokerage house. The corporate and investment bank is a fully integrated capital raising, market making, and financial advisory services bank.

Origin of corporate name

Main article: Wachovia, North Carolina

Wachovia, pronounced wah-KO-vee-yah, has its origins in the Latin form of the Austrian name Wachau. Wachovia ( Pronunciation wah-KO-vee-yah) was the area settled by Moravians in what is now Forsyth County, North Carolina, US Latin ( lingua Latīna, laˈtiːna is an Italic language, historically spoken in Latium and Ancient Rome. Austria (Österreich ( officially the Republic of Austria (Republik Österreich The Wachau (vaˈxaʊ is an Austrian valley with a landscape of high visibility formed by the Danube river ^[1] When Moravian settlers arrived in Bethabara, North Carolina, in 1753, they gave this name to the land they acquired, because it resembled the Wachau valley along the Danube River. Bethabara (from the Hebrew, meaning "House of Passage" and pronounced beth-ab-bra the name of the traditional site of the Baptism of Jesus Christ Year 1753 ( MDCCLIII) was a Common year starting on Monday (link will display the full calendar of the Gregorian calendar (or a Common year The Danube (In Donau from earlier Danuvius, Celtic *dānu, meaning "to flow run" Slovak and Polish Dunaj ^[1] The area formerly known as Wachovia now makes up most of Forsyth County, and the largest city is now Winston-Salem. Forsyth County is a County located in the US state of North Carolina. Winston-Salem is a city in the US state of North Carolina. As of the 2000 census the city population was 185776 in 2004 the city annexed an additional 17483

Corporate history

Today's Wachovia Corporation was originally created by the merger of the legacy Wachovia Corporation and First Union Corporation. While the transaction was billed as a merger of equals, the transaction was actually a purchase of the legacy Wachovia by Charlotte-based First Union. First Union then took the Wachovia name.

Wachovia National Bank

Legacy Wachovia logo

Legacy Wachovia Corporation traced its history to 1879, when it was established as the Wachovia National Bank in Winston-Salem, North Carolina. Year 1879 ( MDCCCLXXIX) was a Common year starting on Wednesday (link will display the full calendar of the Gregorian calendar (or a Common The bank merged with Wachovia Loan and Trust (founded 1893) in 1911 and remained located in Winston-Salem. Year 1893 ( MDCCCXCIII) was a Common year starting on Sunday (link will display the full calendar of the Gregorian calendar (or a Common Year 1911 ( MCMXI) was a Common year starting on Sunday (link will display the full calendar of the Gregorian calendar (or a Common year On December 12, 1986, Wachovia purchased First Atlanta. Events 627 - Battle of Nineveh: A Byzantine army under Emperor Heraclius defeats Emperor Khosrau II 's Persian Year 1986 ( MCMLXXXVI) was a Common year starting on Wednesday (link displays 1986 Gregorian calendar) Founded as Atlanta National Bank on September 14, 1865, and later renamed to First National Bank of Atlanta, this institution was the oldest national bank in Atlanta. Year 1865 ( MDCCCLXV) was a Common year starting on Sunday (link will display the full calendar of the Gregorian calendar (or a Common year This purchase made legacy Wachovia one of the few companies with dual headquarters: one in Winston-Salem and one in Atlanta. In 1998, legacy Wachovia acquired two Virginia-based banks, Jefferson National Bank and Central Fidelity Bank. In 1997, Wachovia acquired both 1st United Bancorp and American Bankshares Inc, giving its first entry into Florida. Year 1997 ( MCMXCVII) was a Common year starting on Wednesday (link will display full 1997 Gregorian calendar Florida ( is a state located in the southeastern region of the United States, bordering Alabama to the northwest and Georgia to the In 2000, legacy Wachovia made its final purchase, which was Republic Security Bank. 2000 ( MM) was a Leap year that started on Saturday of the Common Era, in accordance with the Gregorian calendar.

First Union

First Union Corporation had its beginning as Union National Bank on June 2, 1908. The bank merged with First National Bank and Trust Company of Asheville in 1958 to become the First Union National Bank of North Carolina. Asheville is a City in and the County seat of Buncombe County, North Carolina, United ^[5] Over subsequent decades, but particularly during the 1990s, First Union purchased over 80 other banks before purchasing Wachovia. The 1990s collectively refers to the years between and including 1990 and 1999 The company traces its history to 1781, when the first bank in the United States was chartered as Bank of North America. Year 1781 ( MDCCLXXXI) was a Common year starting on Monday (link will display the full calendar of the Gregorian calendar (or a Common The Bank of North America was chartered on December 31, 1781 by the Congress of the Confederation and opened on January 7, 1782, at ^[5] Wachovia continues to run a branch in Philadelphia that has operated since its inception in 1781, making it the longest continuously operated branch in America.

CoreStates Financial purchase

CoreStates Financial Corporation, headquartered in Philadelphia, was acquired by First Union in April 1998. Philadelphia (ˌfɪləˈdɛlfiə At the time, this was the largest merger in US banking history.

This acquisition was burdened with many problems. Many of these problems arose when First Union attempted to rapidly integrate CoreStates' systems into First Union's. CoreStates tellers did not receive sufficient training with the new systems and First Union and CoreStates' systems were unable to communicate with each other. This led to such problems as account access issues and payments not being correctly applied to loans.

The Money Store

On June 30, 1998, First Union paid $2. Events 350 - Roman usurper Nepotianus, of the Constantinian dynasty, is defeated and killed by troops of the Usurper Year 1998 ( MCMXCVIII) was a Common year starting on Thursday (link will display full 1998 Gregorian calendar) 1 billion for The Money Store. Two years later, it closed the unit, writing off $1. 7 billion. ^[6]

Merger of First Union and Wachovia

On April 16, 2001, Charlotte based First Union Corporation announced it would merge with Winston-Salem based Wachovia Corporation. Events 1178 BC - A Solar eclipse may have marked the return of Odysseus, legendary King of Ithaca, to his kingdom Year 2001 ( MMI) was a Common year starting on Monday according to the Gregorian calendar. This was viewed with great surprise by the financial press and security analysts. While Wachovia had been viewed as an acquisition candidate after running into problems with earnings and credit quality in 2000, the suitor shocked analysts as many speculated that Wachovia would be sold to SunTrust. 2000 ( MM) was a Leap year that started on Saturday of the Common Era, in accordance with the Gregorian calendar. SunTrust Banks Inc ( is an American Bank holding company. The largest subsidiary is SunTrust Bank

As an important part of the deal, First Union would shed its name and assumed the Wachovia identity and stock ticker. Analysts said this move was most likely to help First Union acquire a new identity, as Wachovia's reputation was far better with consumers than First Union. At the same time, Wachovia's name and corporate identity would survive.

The deal was met with criticism and doubt by several groups. Analysts were concerned of First Union's ability to merge with another large company because of the CoreStates deal. Citizens and politicians of Winston-Salem suffered from a hurt of their civic pride because the city would lose Wachovia's corporate headquarters to Charlotte, partly because Winston-Salem is a much smaller city than Charlotte. The city of Winston-Salem was concerned both by job losses by the move and the loss of stature from losing a corporation. First Union was alarmed by the potential deposit attrition and customer loss in the city. ^[7] First Union responded to these concerns by placing the wealth management and Carolinas-region headquarters in Winston-Salem.

The Wachovia Center in Winston-Salem

On May 14, 2001, Atlanta-based SunTrust announced a rival takeover bid for Wachovia, the first hostile takeover attempt in the banking sector in many years. The Wachovia Center is a 460 feet (140 m 34 floor office Skyscraper in Winston-Salem, North Carolina, USA. In its effort to make the deal appeal to investors, SunTrust argued that it would provide a smoother transition than First Union and offered a higher cash price for Wachovia stock than First Union.

Wachovia's board of directors rejected SunTrust's offer and pledged to continue its merger with First Union. SunTrust continued its hostile takeover attempt, and a bitter battle between SunTrust and First Union took place over the summer. Both banks increased their offers for Wachovia, took out newspaper ads, mailed letters to shareholders, and initiated court battles to challenge each other's takeover bids.

On August 3, 2001, Wachovia shareholders approved the First Union deal. Events 8 - Roman Empire General Tiberius defeats Dalmatians on the river Bathinus. Year 2001 ( MMI) was a Common year starting on Monday according to the Gregorian calendar. They rejected SunTrust's attempts to elect a new board of directors for Wachovia, and thus, ended SunTrust's hostile takeover attempt.

Another problem concerned each bank's credit card division. In April 2001, Wachovia agreed to sell its $8 billion credit card portfolio to Bank One. Bank One Corporation, based in Chicago Illinois, was the sixth-largest Bank in the United States. The cards, which would have still been branded as Wachovia, would have been issued through Bank One's First USA division. First Union had sold its credit card portfolio to MBNA in August 2000. MBNA Corporation was a bank Holding company and parent company of wholly owned subsidiary MBNA America Bank N After entering into negotiations, the new Wachovia agreed to buy back its portfolio from Bank One in September 2001 and resell it to MBNA. Wachovia paid Bank One a $350 million termination fee. A termination fee is a Charge levied when a party wants to break the term of an agreement or long-term Contract.

On September 4, 2001, First Union and Wachovia officially merged to form the new Wachovia Corporation. Events 476 - Romulus Augustus, last emperor of the Western Roman Empire, is deposed when Odoacer proclaims himself In order to prevent a repeat of the CoreStates fiasco, the new Wachovia took a deliberately long period of time to combine the banking operations of the new company. Over a period of several years, legacy Wachovia computer systems were converted to First Union systems. The company first began converting systems in the southeast United States (where both banks had branches) before moving to the Northeast, where First Union branches only had to change their signs to reflect the new company name and logo. This process officially ended on August 18, 2003, almost 2 years after the merger took place. Events 293 BC - The oldest known Roman temple to Venus is founded starting the institution of Vinalia Rustica. Year 2003 ( MMIII) was a Common year starting on Wednesday of the Gregorian calendar. ^[8]

In comparison to the CoreStates purchase, the merger of First Union and Wachovia has been a success. The company's slow strategy to combine seems to have prevented large customer attrition rates. In fact, every year since the merger, Wachovia has been ranked number one in customer satisfaction among major banks by the University of Michigan's annual American Customer Satisfaction Index. The University of Michigan Ann Arbor ( U of M, U-M, UM or simply Michigan) is a top-ranked Coeducational public research The American Customer Satisfaction Index ( ACSI) is an economic indicator that measures the satisfaction of consumers across the U ^[9] In addition, the company's stock price has remained strong, and provided a good return to legacy Wachovia shareholders, in contrast to SunTrust's claims during the takeover attempt.

When Wachovia and First Union merged, the multiple skyscrapers with First Union's name came under Wachovia's name. A skyscraper is a tall continuously habitable Building. There is no official definition or a precise cutoff height above which a building may clearly be classified as a skyscraper Charlotte, North Carolina's One, Two, Three, and Four First Union buildings became One, Two, Three, and Four, Wachovia Center (respectively), and the 55-story First Union Financial Center in downtown Miami became the Wachovia Financial Center. The Wachovia Financial Center is a tall office Skyscraper in Miami, Florida. The merger also affected the names of the indoor professional sports arenas in Philadelphia and Wilkes-Barre, Pennsylvania. Philadelphia (ˌfɪləˈdɛlfiə Wilkes-Barre (ˈwɪlksbɛrə or /-bɛri/ is the central city of the Wyoming Valley and County seat of Luzerne County in northeastern Pennsylvania Formerly known as the First Union Center and the First Union Spectrum (both Philadelphia) and First Union Arena (Wilkes-Barre), they are now known as the Wachovia Center, Wachovia Spectrum, and Wachovia Arena at Casey Plaza. The Wachovia Center, formerly known as the CoreStates Center and the First Union Center, is an indoor arena located in Philadelphia Pennsylvania The Wachovia Spectrum (formerly known as the Spectrum (1967–1994 CoreStates Spectrum (1994–1998 and First Union Spectrum (1998–2003 is an The Wachovia Arena at Casey Plaza is an 8300-seat multi-purpose Arena located in Wilkes-Barre Pennsylvania managed by SMG

Acquisitions since 2001

Prudential Securities

Wachovia Securities and the Prudential Securities Division of Prudential Financial, Inc. combined to form Wachovia Securities LLC on July 1, 2003. Prudential Financial, Inc ( is a Fortune Global 500 and Fortune 500 company whose subsidiaries provide Insurance, Investment management, and "July 1st" redirects here For the Ayumi Hamasaki song see H (song. Wachovia owns 62% of this entity, while Prudential Financial owns 38%. ^[10] At the time, the new firm had client assets of $532. 1 billion, making it the nation's third largest full service retail brokerage firm based on assets. ^[10]

Metropolitan West Securities

On October 22, 2003, Wachovia announced it would acquire Metropolitan West Securities, an affiliate company of Metropolitan West Financial. Events 202 BC - Hannibal Barca, leader of the Carthaginians, is defeated by the Roman legions under Scipio Africanus Year 2003 ( MMIII) was a Common year starting on Wednesday of the Gregorian calendar. Metropolitan West Capital Management was a diversified Financial services holding company with interests in a variety of firms that provide financial advice and strategic planning ^[11] This acquisition added a portfolio of over $50 billion of securities on loan to the Wachovia Global Securities Lending division.

SouthTrust

On November 1, 2004, Wachovia completed the acquisition of Birmingham, Alabama-based banking competitor SouthTrust Corporation, a transaction valued at $14. Events 996 - Emperor Otto III issues a deed to Gottschalk Bishop of Freising which is the oldest known document using the name Ostarrîchi "MMIV" redirects here For the Modest Mouse album see " Baron von Bullshit Rides Again " Birmingham (ˈbɝmɪŋhæm is the largest City in the US state of Alabama and is the County seat of Jefferson County. SouthTrust Corporation was a banking company headquartered in Birmingham Alabama. 3 billion. The merger created the largest bank in the southeast United States, and the fourth largest bank in terms of holdings, and the second largest in terms of number of branches. Integration was completed by the end of 2005. ^[12]

Westcorp

Westcorp, Western Financial Bank's parent company, WFS Financial Inc. and Wachovia announced a proposed acquisition by Wachovia in September 2005. Westcorp and WFS Financial Inc. shareholders approved the acquisition on Jan. 6, 2006 and on March 1, 2006, the merger was complete. This acquisition made Wachovia the ninth largest auto finance lender in the competitive U. S. auto finance market and provided Wachovia with a small retail and commercial banking presence in southern California. Southern California, or So Cal, is defined as the southern portion of the U ^[13] On February 12th, 2007, the former 19 Western Financial Bank branches opened under the Wachovia name. These branches became the launching point for a much larger Wachovia presence in California with the acquisition and integration of World Savings Bank in 2007.

Golden West Financial

Wachovia agreed to purchase Golden West Financial for a little under $25. 5 billion on May 7, 2006. Events 558 - In Constantinople, the dome of the Hagia Sophia collapses Year 2006 ( MMVI) was a Common year starting on Sunday of the Gregorian calendar. ^[14][15] This acquisition gave Wachovia an additional 285-branch network spanning 10 states. Wachovia greatly raised its profile in California, where Golden West held $32 billion in deposits and operated 123 branches. ^[14]

Golden West, which operated branches under the name World Savings Bank, was the second largest savings and loan in the United States. A savings and loan association, also known as a thrift, is a Financial institution that specializes in accepting Savings deposits and making Mortgage The business was a small savings and loan in the San Francisco Bay area when it was purchased in 1963 for $4 million by Herbert and Marion Sandler. Year 1963 ( MCMLXIII) was a Common year starting on Tuesday (link will display full calendar of the Gregorian calendar. By the time Wachovia announced its acquisition, Golden West had over $125 billion in assets and 11,600 employees. The Sandlers agreed to remain on the board at Wachovia. ^[14] In 2006, Golden West Financial was named the "Most Admired Company" in the mortgage services business by Fortune magazine. A mortgage loan is a Loan secured by Real property through the use of a Mortgage (a legal instrument Fortune is a Global Business Magazine published by Time Inc's Fortune|Money Group ^[16]

By October 2, 2006 Wachovia had completed the acquisition of Golden West Financial Corporation. Events 1187 - Siege of Jerusalem: Saladin captures Jerusalem after 88 years of Crusader rule Year 2006 ( MMVI) was a Common year starting on Sunday of the Gregorian calendar. The integration process is scheduled to be completed mid-2008. 2008 ( MMVIII) is the current year in accordance with the Gregorian calendar, a Leap year that started on Tuesday of the Common ^[17]

A. G. Edwards

On May 31, 2007, Wachovia announced plans to purchase A. G. Edwards for $6. AG Edwards Inc is a financial services holding company its principal wholly owned subsidiary is A 8 billion to create the United States' second largest retail brokerage firm. ^[18] The acquisition closed on October 1, 2007. In early March 2008 Wachovia began to phase out the AG Edwards brand in favor of a unified Wachovia Securities.

Wachovia today

Atlanta, Georgia Headquarters at Atlantic Station

Wachovia is currently ranked number 46 on the Fortune 500 list for 2007,^[19] with $46. Please do not add the complete list of fortune 500 companies The list is copyrighted by Fortune which makes money by selling the content Year 2007 ( MMVII) was a Common year starting on Monday of the Gregorian calendar in the 21st century. 8 billion in revenue, and is the fourth largest bank holding company in the United States, with banking centers in 15 east coast states and Washington, D.C. Wachovia provides brokerage services through a subsidiary, Wachovia Securities. Washington DC ( formally the District of Columbia and commonly referred to as Washington, the District, or simply D Wachovia Securities, located in St Louis Missouri, is the second largest brokerage firm in the United States as of October 1, 2007 with Wachovia also has an asset management division, operating as Evergreen Investments in the United States and as Wachovia Global Asset Management abroad. Evergreen Investments is the brand name under which Wachovia Corporation conducts its Investment management business through its investment branch known

In 2005, Wachovia was among 53 entities that contributed the maximum of $250,000 to the second inauguration of President George W. Bush. Year 2005 ( MMV) was a Common year starting on Saturday (link displays full calendar of the Gregorian calendar. George Walker Bush ( born July 6 1946 is the forty-third and current President of the United States. ^{[20] [21] [22]}

In June of 2005, Wachovia negotiated to purchase monoline credit card company MBNA. However, the deal fell through when Wachovia balked at MBNA's purchase price. Within a week of the deal's collapse, MBNA entered into an agreement to be purchased by Wachovia's chief rival, Bank of America. Banc of America Securities Bank of America () is the largest bank by asset and second largest commercial Bank by deposits and Market capitalization in United Wachovia received $100 million out of this deal, the result of an agreement Wachovia predecessor First Union made in 2000 when it sold its credit card portfolio to MBNA. This agreement required MBNA to pay this sum if it were ever sold to Bank of America. In late 2005 Wachovia announced that it would end its relationship with MBNA and start up its own credit card division so that the bank could issue its own Visa cards.

In the first quarter of 2007, Wachovia reported $2. 3 billion in earnings, including acquisitions and divestitures. ^[23]

Controversies

A New York Times article titled "Corporate Profits, From Data Sold to Thieves"^[24] published on May 20, 2007 described Wachovia's negligence in screening on taking action against companies connected to identity theft. Events 325 - The First Council of Nicaea &ndash the first Ecumenical Council of the Christian Church is held Year 2007 ( MMVII) was a Common year starting on Monday of the Gregorian calendar in the 21st century. These companies used stolen identities to remove funds from personal Wachovia bank accounts via unsigned checks.

The article goes on to say "In all, Wachovia accepted $142 million of unsigned checks from companies that made unauthorized withdrawals from thousands of accounts, federal prosecutors say. Wachovia collected millions of dollars in fees from those companies, even as it failed to act on warnings, according to records. " Furthermore, the article adds "In a lawsuit filed last year, the United States attorney in Philadelphia said Wachovia received thousands of warnings that it was processing fraudulent checks, but ignored them. "

On April 25, 2008, Wachovia agreed to pay up to $144 million to end the investigation without admitting wrongdoing. Events 1607 - Eighty Years' War: The Dutch fleet destroys the anchored Spanish fleet at Gibraltar. 2008 ( MMVIII) is the current year in accordance with the Gregorian calendar, a Leap year that started on Tuesday of the Common ^[25] The investigation found that Wachovia had failed to conduct suitable due diligence, and that it would have discovered the thefts if it had followed normal procedures. The penalty is one of the largest ever demanded by the Office of the Comptroller of the Currency. The Office of the Comptroller of the Currency (or OCC) is a US federal agency established by the National Currency Act of 1863 and serves to Charter

On June 02, 2008, Wachovia Corp. Events 455 - The Vandals enter Rome, and plunder the city for two weeks 2008 ( MMVIII) is the current year in accordance with the Gregorian calendar, a Leap year that started on Tuesday of the Common chief executive Ken Thompson was pushed out Monday as head of the nation's fourth-largest bank, becoming the latest financial services executive to be ousted amid turmoil in the U. S. housing market. ^[26] The board of the Charlotte-based bank said it asked Thompson, 58, to retire and replaced him on an interim basis with Chairman Lanty Smith. Smith had already replaced Thompson as chairman last month in a move the bank said "strengthens independent leadership" at the company.

References

External links

• Wachovia Corporate Website
• Wachovia Securities Website
• Yahoo! - Wachovia Corporation Company Profile

Links to acquired companies

• CoreStates
• First Union
• Golden West
• SouthTrust
• Westcorp
• Western Financial Bank
• World Savings