Howlingwolf
08-12-2008, 08:11 AM
http://www.foxbusiness.com/story/markets/industries/finance/wachovia-details-job-cuts-securities-probe/
Wachovia Details Job Cuts, Securities Probe
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Wachovia increased the number of job cuts it expects to make as part of a previously announced restructuring plan, now seeing nearly 7,000 employees being impacted.
In a filing with the Securities and Exchange Commission, Wachovia (WB: 18.21, +0.28, +1.56%) said it plans to slice 6,950 jobs, up from the 6,350 in previous estimates. The bank said it sees $525 million to $650 million in restructuring costs, mostly related to severance payouts.
Wachovia also said it is in settlement talks with the SEC and various state regulators over its handling of auction-rate securities. The bank boosted its legal reserves for auction-rate securities by $500 million as of the end of June to reflect estimated potential losses associated with a possible settlement.
The SEC and New York Attorney General Andrew Cuomo have already reached settlements with Citigroup (C: 19.82, +0.43, +2.21%) and UBS (UBS: 21.69, +0.54, +2.55%) over their auction-rate securities businesses, resulting in fines and billions of dollars of refunds.
Also, Wachovia acknowledged that the SEC is considering civil charges or administrative proceedings related to the bank's municipal derivatives bid practices.
Wachovia Details Job Cuts, Securities Probe
SEND FOXBusinessDigg It StumbleUpon Newsvine Reddit Related ContentNew York Expands Auction-rate Securities Probe
Wachovia increased the number of job cuts it expects to make as part of a previously announced restructuring plan, now seeing nearly 7,000 employees being impacted.
In a filing with the Securities and Exchange Commission, Wachovia (WB: 18.21, +0.28, +1.56%) said it plans to slice 6,950 jobs, up from the 6,350 in previous estimates. The bank said it sees $525 million to $650 million in restructuring costs, mostly related to severance payouts.
Wachovia also said it is in settlement talks with the SEC and various state regulators over its handling of auction-rate securities. The bank boosted its legal reserves for auction-rate securities by $500 million as of the end of June to reflect estimated potential losses associated with a possible settlement.
The SEC and New York Attorney General Andrew Cuomo have already reached settlements with Citigroup (C: 19.82, +0.43, +2.21%) and UBS (UBS: 21.69, +0.54, +2.55%) over their auction-rate securities businesses, resulting in fines and billions of dollars of refunds.
Also, Wachovia acknowledged that the SEC is considering civil charges or administrative proceedings related to the bank's municipal derivatives bid practices.