How screwed is Wachovia (WB)? It has hired Goldman Sachs (GS) to help it figure out what to do with its loan portfolio (which was left over when CEO Ken Thompson was tossed out of the company last month).
The move follows a devastating second quarter in which WB reported a $708 million loss. WB’s management is no doubt hoping that Goldman can provide some of the magic that has helped the latter firm embarrass its Wall Street peers throughout the credit crisis. Charlotte Observer:
Wachovia spokeswoman Christy Phillips Brown confirmed the bank has hired Wall Street giant Goldman Sachs Group Inc. to perform “analytics on our loan portfolio to evaluate various alternatives.” She declined to comment further.