CtW challenges Wachovia directors

By Andrew Coen

Jan 22, 2008 @ 12:58 pm (Updated 3:39 pm) EST

A week after challenging Citigroup board members for a lack of oversight in mortgage-related losses (InvestmentNews, Jan. 15), CtW Investment Group is calling on Wachovia Corporation's Board of Directors' Risk Committee to describe what they did to protect shareholders from excessive exposure to mortgage-related risk over the past two years.

The Washington, D.C.-based affiliate of a coalition of American Labor Unions called “Change to Win,” sent letters today to Wachovia’s Risk Committee members Dona Davis Young, Donald M. James, Van L. Richey, and William H. Goodwin.

Wachovia reported today a $268 million drop in net income or 5 cents a share (InvestmentNews, Jan. 22)

CtW officials said in a statement that all four directors will try for re-election this year and that unless the Risk Committee members can provide a “convincing account of their oversight activities” that the coalition will urge shareholders to reject their bids.

Wachovia officials could not be reached for comment.

"Wachovia’s Risk Committee has diligently monitored the company in accordance with its responsibilities, including risks associated with mortgage-related exposures," said a Wachovia spokeswoman.

"There is no basis for an election challenge."