Business Case Studies & Business Publications

Integration of Wachovia and Golden West ...

Bourgeois, L. J. I...

Case

Integration of Wachovia and Golden West (A)

Bourgeois, L. J. III; Hammaker, Paul M.; Jackson, Matt; Maher, Dave; Schwarzschild, Adam

BP-0532 | Published December 23, 2008 | 19 pages Case

Collection: Darden School of Business

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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.