Wachovia released a statement today that looks like a response to its stock price's failure to rebound since the market's close on Friday. In the statement, the company asserts that it is in a strong position following the FDIC brokered deal to sell its retail banking business yesterday to Citi. The newly slimmer holding company, still under ticker symbol WB, includes Evergreen Investments.

Close to 4pm on Tuesday, the company's stock was trading around $3.50 per share, up from Monday's price but still way off Friday's $10 per share.

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Company Press Release

CHARLOTTE, NC—Wachovia Corporation remains well capitalized after Monday's announcement to sell certain Wachovia businesses to Citigroup. Wachovia Corporation is supporting its operating subsidiaries including Wachovia Securities and Evergreen Investments. Wachovia is in a strong position to provide credit support and overall capital backing to key businesses, including retail brokerage, asset management, retirement services and capital markets. In addition, the Federal Reserve Bank stands ready to provide liquidity as needed.

Wachovia also noted that Citigroup's use of government assistance in connection with its purchase of certain Wachovia businesses is not dependent on the financial services relief plan legislation the U.S. congress has been considering.

About Wachovia

Wachovia Corporation (NYSE:WB) is one of the nation's largest diversified financial services companies, with assets of $812.4 billion and market capitalization of $33.5 billion at June 30, 2008. 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 3,300 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 $1.1 trillion in client assets through 14,600 financial advisors 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.

 

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