A credible competitor
US SEC claims Wells Fargo Securities, formerly Wachovia Capital Markets, violated securities laws when selling CDOs tied to the ailing housing market
On the move
Schemes involved staff from 11 high-profile US banks
Don Truslow, Wachovia's former chief risk officer, will be executive director of the Financial Stability Industry Council
Structured Products Americas Awards 2010
Todd Steinberg, New York-based head of equity and commodity derivatives for the Americas at BNP Paribas, has resigned from the bank.
Hampered by its move to bolster credit loss reserves, Wells Fargo saw a $2.55 billion loss in the fourth quarter of 2008.
The US government's move to rescue beleaguered banking giant Citigroup will not impair its ability to bail out other banks.
UK and European financial institutions faced declining market sentiment in early trading today, while the cost of credit protection on US banks continued to rise.
Losses & Lawsuits
Wachovia reported a third quarter loss of $23.9 billion, blaming an $18.8 billion goodwill impairment charge, declining market valuations and its acquisition by Wells Fargo.
Citi yesterday gave up on its attempt to take over Wachovia, ceding the ground to rival bidder Wells Fargo.
The cost of credit protection on UK banks fell further in early trading today following the unveiling of a £50 billion government rescue plan on Wednesday, but US markets remained unstable.
Credit default swaps (CDSs) on a number of major dealers widened yesterday in spite of the US Senate vote on a revised $700 billion financial rescue plan.
The cost of protection on some of the world’s largest financial institutions fell yesterday as the US Senate agreed to vote on a revised version of the $700 billion financial rescue plan.
Citigroup announced today it would buy the banking operations of Charlotte, North Carolina-based bank Wachovia for approximately $2.16 billion in stock.
The cost of protection on some of the world’s largest dealers surged on Friday as uncertainty grew over the US government’s $700 billion plan to purchase devalued assets from financial institutions.
Kenneth Phelan has been appointed chief risk officer at Wachovia against the backdrop of increased financial turmoil and a possible merger with Morgan Stanley.
Credit default swap (CDS) spreads on financial institutions have continued to widen, despite the bailout of US insurer American International Group (AIG) by the US Federal Reserve Board on Tuesday.
Donald Truslow, chief risk officer at Wachovia, is to retire as soon as his successor is named, in the latest in a series of high-level departures at the investment bank.
Wachovia has revealed a $8.9 billion loss for the second quarter.
A legal spat over the proposed leveraged buyout of Texas-based media company Clear Channel intensified on April 4, as five banks filed a counterclaim in New York against the company and its private equity suitors.