Wachovia begins new CFO search following multibillion dollar loss
This week has been a roller coaster for Wachovia.
Tuesday morning: Wachovia announces an $8.9 billion loss accompanied by a massive dividend reduction.
Tuesday afternoon: Shares soared 27 percent on news that the company would not issue new stock to raise capital.
Thursday afternoon: New CEO Robert Steel’s purchase of 1 million shares is made public (Steel purchased the Wachovia shares on the same day as the poor earnings report was released).
Thursday evening: CFO Thomas Wurtz’s departure is announced, he will leave as soon as a replacement is found.
Shares fell more than 10 percent on Thursday. Perhaps this is the return that should have been realized immediately following the terrible earnings announcement? Or maybe the report did represent the bottom for Wachovia since their shares have doubled in the past ten days (and it would be difficult for their third quarter to be any worse than the second one)?
This week’s news has made proper valuation of Wachovia pretty difficult. Clearly, the markets have just as many questions as I do.
Tags: cfo, wachovia
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