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New chairman at Wachovia doesn't silence critics

By Rick Rothacker | Charlotte Observer
  • Posted on Friday, May 9, 2008

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CHARLOTTE, N.C. — Wachovia, the nation's fourth largest bank, announced Thursday that lead independent director Lanty Smith had assumed the post of chairman from Ken Thompson, who has been under fire for the bank's stock slide and a litany of missteps in recent weeks.

Thompson, however, would remain as the bank's CEO, but analysts were mixed on whether the move would be enough to restore confidence in the bank, which announced Tuesday that its first quarter loss was double what had previously been announced.

In a research note, Sandler O'Neill + Partners analyst Kevin Fitzsimmons said the move might provide "incremental relief" to investors worried about the company's direction. At last month's shareholder meeting, he faced calls to resign, largely over the bank's ill-timed acquisition of mortgage specialist Golden West Financial in 2006. Since then, the bank has disclosed additional missteps, including a regulatory settlement for its ties to telemarketers.

Read the full story at Charlotte.com.

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