It's just another day on the job for veteran equities analyst Richard X. Bove when he says Wachovia (WB Quote), its board and its interim management "have no idea how to run this company."
Bove's perception came after the Charlotte, N.C., bank announced last week that it had ceased making option adjustable-rate mortgages. Wachovia's roughly $120 billion option-ARM portfolio has caused the company to take billions of dollars of losses as the housing market dropped, leading the reeling bank to push out CEO Ken Thompson.
"The company has articulated no new strategy; presented no new business model; selected no new CEO; and/or connected with no new acquisition partner. ... These guys ran this company into the ground and they have no idea as to how to get it out of trouble except to stop making Pick-a-Pay mortgages," he writes. "Therefore I am making a suggestion. Hire [former Morgan Stanley CEO] Phil Purcell as CEO." ...
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