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$5.15 1.55 (43.06%)
10/10/2008 4:01 PM

Wachovia Corp (WB)

CAPS Rating:
**

Provides a wide range of commercial and retail banking and trust services through full-service banking offices located in states throughout the Southeast. The company provides various other financial services, including mortgage and investment banking.

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Recs

3

Avatar bkuf (< 20) Submitted: 8/21/07 12:41 AM : Underperform Start Price: $45.64 WB Score: 49.92

WB paid way too much for Golden West Bank and their timing was awful. Golden West was heavy into CA sub-prime mortgage lending. WB bought it just before the sub-prime crisis began. They will be burned by mortgage losses in CA for a long time. Definitely looks like they shot themselves in the foot there. The BofA purchase of MBNA forced WB to get back into the credit card business which they had farmed out when they realized they could not make money in it. They greatly expanded their brokerage business with the recent AG Edwards purchase. Eventually, that will be a money maker. But this year is not looking like a good time to be buying brokerages. All in all, things look like they'll get worse before they get better for WB.

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