Items Tagged with 'Ken Thompson'


  • Wachovia Ditches Pick-A-Pay, Will Waive Prepayment Fees on Option ARMs

    In a nod to increasing investor and credit rating agency concern over mushrooming exposure to its now-infamous Pick-A-Pay mortgages, Wachovia Corp. [stock WB][/stock] said on Monday afternoon that it would no longer offer negatively amortizing mortgages to customers. So-called option ARMs were originated in force during the recent housing boom, and have recently led to large losses for the banks involved in making them.
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  • Sandler: Golden West Too Convenient a Scapegoat

    Wachovia Corp. [stock WB][/stock] has larger problems than its option ARM portfolio, according to Herb Sandler, the man who built Golden West Financial into a powerhouse by inventing the negative amortization mortgage. In remarks published Monday in the Wall Street Journal, Sandler says that Wachovia has much larger fish to fry than its exposure to increasingly troublesome mortgages on its portfolio.
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  • Wachovia's Thompson Forced Out by Board

    The board of directors at Wachovia Corp. [stock WB][/stock] forced CEO Ken Thompson to retire, the company said on Monday, a move that comes on the heels of an unexpected $393 million first quarter loss and what sources close to the banks said was "discontent" among a number of board members over Thompson's ill-fated orchestration of option ARM mortgage specialist Golden West Financial last year.
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  • Wachovia Posts Unexpected Q1 Loss; Will Raise Capital

    (Update 1: includes updated look at mortgage exposure) Wachovia Corp [stock WB][/stock] said Monday morning that it lost $393 million, or $.20/share, during the first quarter of 2008 as the nation's fourth largest bank struggled with its exposure to the troubled U.S. mortgage market. The earnings miss contrasted with earnings of $2.3 billion, or $1.20/share, in the year ago period.
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  • Mortgage-Related Charges Drive 98 Percent Drop in Profit at Wachovia

    Fourth quarter profit at Wachovia Corp. fell 98 percent to $51 million ($.03 per share), versus $1.6 billion one quarter earlier and $2.3 billion one year earlier, as the nation's fourth largest bank was socked by mortgage-related charges. Bloomberg reported that Wachovia's earnings missed analysts estimates badly, who had been expecting earnings of $.33 per share for the quarter.
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  • Wachovia's Thompson Stumps For Future Growth, Says Loss Reserves 'Close to Right'

    Wachovia CEO Ken Thompson made the PR rounds earlier today, granting a wide-ranging interview to the Associated Press in which the chief executive of the fourth largest bank in the U.S. affirmed his company's earlier mortgage-realted loss estimates. Saying he does not expect a recession to result from the housing correction, Thompson was liberal with blame for the problems now facing the mortgage banking industry:
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