Integration of Wachovia and Golden West (a)

Abstract

In July 2007, Wachovia Corporation's CEO is pleased with a report that shows the firm's record-setting second quarter results. In the past three months, Wachovia has doubled its earnings and posted record revenues, mostly attributable to the large consumer real-estate loans related to the Golden West Financial acquisition that has contributed to the bank's growth. The transition of Golden West into Wachovia's platform had been quick and smooth, despite their cultural, geographic, and product-offering differences. The CEO was excited that the acquisition provided new opportunities for lending in what were perceived as less risky markets, particularly single-family home mortgages with adjustable rates. But he wondered if there were any adjustments necessary to extract ultimate value from Golden West.

Excerpt

UVA-BP-0532

Dec. 23, 2008

INTEGRATION OF WACHOVIA AND GOLDEN WEST (A)

We are excited about the opportunities presented as we join forces with one of the country's premier financial institutions. The combination of Wachovia and Golden West greatly enhances our market presence, product set, and mix of businesses, enabling us to deliver a stronger value proposition for our customers and shareholders. For the past four months, teams from Wachovia and Golden West have worked together diligently to plan for the integration of our two companies. We are now totally focused on implementing the integration plan and delivering exceptional service and products to our customers. On behalf of all my Wachovia teammates, we welcome the employees of Golden West.

—Ken Thompson, Wachovia chairman and CEO

Introduction

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Keywords: Market presence, integration plan, merger and acquisition