Was Wachovia's purchase of Golden West a bust?

When Wachovia bought Golden West in 2006, some thought it was paying a hefty premium to extend its footprint in the mortgage market. You could say those critics were right. It looks like the portfolio of ARMs is going to lead to some big writedowns. That said, Wachovia's option ARM business is still making money, Fortune notes. Still, CEO Ken Thompson faces the challenge of his career. He's somehow got to find a way to manage through this and make shareholders forget he bought in at the top.  

For more:
- here's the Fortune article

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