Verrone has been with Wachovia since 1995 and has served asmanaging director for Wachovia Securities northeastern region,where he was responsible for a number of $50-million mortgages andis known for helping to get mezzanine financing popularized. InSeptember 2007 he was promoted to co-head of Real Estate Americas,where he was responsible for domestic real estate clients,commercial mortgage-backed securities, structured finance, realestate corporate banking, tax credit and agency finance, realestate syndications, and real estate collateralized debt obligationsales and trading.

|

The news comes one day after Wachovia Corp. nearly doubled itspreviously reported first-quarter loss. The bank is now claiming aloss of $708 million, or 36 cents per share, compared to theirpreviously reported loss of $393 million in mid-April.

|

Although the loss was attributed to a bank-owned life insuranceportfolio, The New York Times reports that the company isalso experiencing losses associated with the housing slump,including a $121.2-billion portfolio of "option" adjustable-ratemortgages.

|

The company did not indicate that Verrone's departure hasanything to do with the losses, but Gerard Cassidy, an analyst atRBC Capital Markets in Portland, ME spoke with GlobeSt.com aboutthe possibility. "What you need to see happen at Wachovia is theindividuals responsible for approving strategies and loans that arenow causing significant losses have to be replaced," Cassidy says."If this person was responsible for commercial real estate losses,than replacing him is something that needs to be done."

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.