The fourth-largest U.S. bank's $24 billion acquisition of Golden West in 2006 has proved to be an expensive gamble due to the risky adjustable rate mortgages it assumed as part of the deal, which now account for $120 billion of Wachovia's $170 billion mortgage portfolio. Slow to acknowledge the extent of its problem, executives at Wachovia continue to deny the bank was at risk, but hedged its bet with other investments. In April, the company set aside $2.8 billion for anticipated loan losses and announced plans to raise $7 billion in new capital by selling stock. Last fall, it acquired brokerage firm A.G. Edwards, which now operates as Wachovia Securities, for $6.8 billion. |
| Revenues |
55,528.0 |
18.6 |
| Profits |
6,312.0 |
-19.0 |
| Assets |
782,896.0 |
— |
| Stockholders' equity |
76,872.0 |
— |
| Market value (3/28/2008) |
51,501.5 |
— |
| Revenues |
11.4 |
| Assets |
0.8 |
| Stockholders' equity |
8.2 |
| 2007 $ |
3.26 |
| % change from 2006 |
-29.6 |
| 1997-2007 annual growth rate % |
0.9 |
| 2007 |
-29.8 |
| 1997-2007 annual rate |
0.8 |
| 4 | Wachovia Corp. | 38 | 55,528.0 | | 5 | Wells Fargo | 41 | 53,593.0 | | 6 | U.S. Bancorp | 122 | 20,308.0 | | 7 | Capital One Financial | 130 | 18,965.5 | | 8 | Bank of New York Mellon Corp. | 172 | 14,798.0 | | 9 | SunTrust Banks | 193 | 13,464.6 | | 10 | State Street Corp. | 225 | 11,818.0 | | 11 | National City Corp. | 226 | 11,791.3 | | 12 | Regions Financial | 245 | 10,753.8 | | 13 | BB&T Corp. | 250 | 10,668.0 | | 14 | PNC Financial Services Group | 264 | 9,956.0 | | 15 | Fifth Third Bancorp | 307 | 8,494.0 | | 16 | KeyCorp | 321 | 7,873.0 | | 17 | Marshall & Ilsley Corp. | 425 | 5,745.2 | | 18 | Northern Trust Corp. | 447 | 5,395.1 | | 19 | Comerica | 501 | 4,618.0 | | 20 | M&T Bank Corp. | 509 | 4,477.8 | | 21 | Synovus Financial Corp. | 511 | 4,462.8 | | 22 | Popular | 571 | 3,822.5 | | 23 | Zions Bancorp. | 589 | 3,617.7 | | 24 | Huntington Bancshares | 610 | 3,419.6 | | 25 | Commerce Bancorp | 643 | 3,179.7 | | 26 | First Horizon National Corp. | 650 | 3,165.9 | | 27 | Colonial Bancgroup | 964 | 1,742.7 |
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From the May 5, 2008 issue
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