Philadelphia Inquirer (06/25/08) ; Loyd, Linda
Just weeks after the ouster of CEO G. Kennedy Thompson, Wachovia Corp. has hired Goldman Sachs Inc. to provide advisory services for its struggling mortgage portfolio—much of it acquired when it purchased Golden West Financial Corp. in 2006 in an effort to gain a presence in California's housing market. "Pick-a-payment loans" account for $121 billion of Wachovia's $480 billion loan portfolio, and Morningstar Inc. analyst Jamie Peters figures the bank would need to raise capital if home prices in California fall by 40 percent or so. Though an acquisition by JPMorgan Chase & Co. remains a possibility, Peters notes that "there is a good chance Wachovia has enough funds to make it through the [credit] crisis."
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