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URL:  http://boards.fool.com/agreed-the-first-union-wolf-is-not-doing-a-very-19729734.aspx

Subject:  Re: Wachovia Date:  10/18/2003  4:10 PM
Author:  tlpriest Number:  128558 of 756998

Agreed. The First Union wolf is not doing a very good job of hiding in the Wachovia sheep's clothing.

But wait, there's more. I've been digging through the amended agreement language and have learned that not only is Wachovia Corporation the parent of Wachovia Securities, Wachovia Bank, Evergreen Investement Management, etc. but that each of these separate entities charges the other for services. That is, Wachovia Bank charges Wachovia Secruities a 1% management fee of the average monthly balance held in money market accounts (Evergreen charges 0.80%, currently waived -- guess where Wachovia Corp intends to move all the cash sweep: to the 1% overhead option). This 1% management fee is paid by clients. Currently, 2.5% of my account is held in cash, and assuming that's the Wachovia Securities average, then Wachovia Corp is going to add 1% of 2.5% of their entire assets under managment to their bottom line. WB investors should be happy with this move.

And, when this proves to be an insufficient profit margin, all of Wachovia Securities' account holders have waived their rights with respect to fiduciary responsibility and left Wachovia Corporation free to increase it's internally charged management fees under the covers to generate more revenue at customers' expense. Whoopie! Wonder if I should invest in these guys but move my money elsewhere? :)

This is like your doctor incorporating different parts of their business: patient care, billing, and records, and each entitiy charging the other for services which are then billed back to the client. Here's your $100 doctor's visit bill along with a $0.50 billing corporation service fee and a $0.25 filing corporation service fee. Nice way to move expenses from opex to a revenue stream.

Travis

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