There’s a reason they government put ’em down. Wachovia has just announced a $23.9 billion quarterly loss — $18.8 billion of which is the impairment of goodwill. That represents the end of its $25 billion acquisition of Golden West, back in 2006. Deals don’t get much worse than that. Excluding Goodwill and various merger expenses, it only lost $4.4 billion.
The two bright spots we can find. Deposits did actually grow year-over-year, so there’s little evidence of a widespread run on the bank by customers. (But there is evidence that bigger commercial customers had started to flee the bank.)
More importantly, the merger is still go with Wells Fargo, slated to be complete this quarter. Quite a relief.
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