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In recent months many corporations have been to make major cutbacks, change the operating polices, and some have been forced to close their doors for good as a result of many financial and economic disasters that occurred in the proceeding years. While news has been made about corporations such as Circuit City and Linen ‘n Things filing for chapter 7 bankruptcy some of the most unexpected financial crisis have come major financial instiutions such as Wachovia. As a result these corporations have been forced to merge, plead for government assistance, ans possibly close their doors for good. IN this paper we’re going to discuss the financial criis that Wachovia experienced in 2008 and some possibilities they may need to look into.
Wachovia is a financial institute that provides multiple services including asset and wealth management, corporate investment banking products and services, individual services and products, brokerage, and retail banking. With more than 100,000 employees, branches in 21 states, and more than 40 international offices Wachovia Bank is one of the largest American financial institutions. Wachovia, which is the latin dialect for the Austrian word, Wachau, was founded in 1879 operating under the name of Legacy Wachovia Corporation. The company’s headquarters is based in Winston-Salem, North Carolina and gradually became one of the largest banks within the Southeast of America. It wasn’t until 2001 that Wachovia would become a major player in the financial industry across America. On September 1, 2001 Wachovia was aquirered by First Union Corporation. Both companies found the merger fortuitous as Wachovia had found itself in some financial trouble due to poor profit earnings and poor credit quality and First Union Corporation benefited from operating under the Wachovia name as would behoove their popularity amongst consumers. Unlike some of Wachovia’s previous merger their merger with First Union was extremely successful and helped to launch the corporation has been ranked as number one under customer satisfaction amongst according to a study done by University of Michigan. However, since then the corporation has fallen into additional financial troubles due to the economy. Therefore, in December 31, 2008 Wachovia was no longer an independent corporation as it was purchased by Wells Fargo. The financial plan is to slow phase out the Wachovia name and incorporate it into the Wells Fargo brand by 2011.
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