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On Feb. 1, 2008, Moody's Investors Service announced that it has placed BluePoint Re, a Wachovia Corporation subsidiary, on review for possible downgrade.
Wachovia's 2007 financial results include valuation losses on BluePoint Re assets that resulted in a write-down of substantially all of Wachovia's $300 million investment in BluePoint Re. Consequently, Wachovia believes BluePoint Re should have no further negative impact on Wachovia's financial results.
As background, BluePoint Re is a financial guaranty re-insurer licensed in Bermuda. It is a distinct company with stand-alone operations and governance. BluePoint Re is separately capitalized and separately rated by the rating agencies. Financial guaranty re-insurers like BluePoint Re have been affected by the current dislocation in the credit markets, and Moody's review is a result of the market disruption.
About Wachovia
Wachovia Corporation (NYSE: WB) is one of the nation's largest diversified financial services companies, with assets of $782.9 billion and market capitalization of $75.3 billion at December 31, 2007. Wachovia provides a broad range of retail banking and brokerage, asset and wealth management, and corporate and investment banking products and services to customers through 3,400 retail financial centers in 21 states from Connecticut to Florida and west to Texas and California, and nationwide retail brokerage, mortgage lending and auto finance businesses. Globally, clients are served in selected corporate and institutional sectors and through more than 40 international offices. Our retail brokerage operations under the Wachovia Securities brand name manage more than $1.2 trillion in client assets through 17,900 registered representatives in 1,500 offices nationwide. Online banking is available at wachovia.com; online brokerage products and services at wachoviasec.com; and investment products and services at evergreeninvestments.com.