Wachovia Corporation (WB) update #3
Posted by intelledgement on Mon, 02 Jun 08
Wachovia (WB), the overextended Charlotte-based bank we are short shares of, today fired their CEO, Ken Thompson, and named the chairman of their board of directors, Lanty Smith, to replace him on an interim basis. According to the press release, Smith stated “No single precipitating event caused the Board to reach this decision, but a series of previously disclosed disappointments and setbacks cumulatively have negatively impacted the company and its performance.” LOL no kidding.
Thompson was quoted as saying, “It has been an honor to serve this great company for 32 years, and to lead it for the past eight years. Together we achieved great successes and overcame tough challenges. I have complete confidence in the ability of 120,000 Wachovia employees to continue to take this company forward….” Well…guess that depends on what your definition of “forward” is…Thompson did a bangup job for most of his tenure, but Wachovia’s too-eager participation in the housing bubble under his aegis capped by their monumentally stupid 2006 acquisition of Golden West with their steamer trunks full of bad mortgages doomed the company.
That’s our story, and we’re sticking to it.