World Savings Bank is the bank in the United States. It is interesting to note that the major organization is the Golden West Financial which has been operating its branches under the brand name of World Savings Bank. It was the second largest saving and loan organization in the United States. Prior to 1963, the company was operating as a small savings and loan company in the San Francisco Bay Area. The company was purchased by Herbert and Marion Sandler for $4 million in 1963. In 2006, Golden West had more than $125 billion in assets and more than 11600 employees were working in the organization. In the same year, Wachovia declared its acquisition and by Fortune Magazine, Golden West Financial was also attributed as the “Most admired company”. 

The acquisition of World Savings Bank by Wachovia was taking place in the year 2006. On May 7, Wachovia agreed to buy Golden West Financial for about $25.5. Acquisition of World Savings Bank by Wachovia was a strategic decision of the company because this acquisition can lead the company to increase its geographical reach. After the acquisition, Wachovia got 285 branches of Golden West Financial which were in more than 10 states. The integration process of Wachovia and Golden West Financial was expected to complete in mid-2008.

Wachovia finally acquired Golden West Financial for $24.5 billion. The company faced various issues after this acquisition. However, the major benefits were enjoyed by the customers who could enjoy the services and products of Wachovia and World Savings Bank. One thing which became observable after this acquisition was the slow rate of World Savings Bank lending.  Basically according to the proponents of this acquisition, World Savings Bank has faced the same situation in 1998 and the performance of the bank was stabilized after this acquisition.

In fact when Wachovia declared its acquisition of Golden West Financial, the investors were prompted and attracted towards World Savings Bank because the two major and leading names were integrating together. The small monthly payments and very low interest rates were the appealing factors for the borrowers. Therefore, World Savings Bank allowed the borrowers to manage their funds and payments very easily. The financial liabilities of borrowers were reduced during that time because flexibility and relaxations have been offered to the borrowers. However, there are many investors who also face a lot of problems because of their wrong expectations from the acquisition.

The operations of World Savings Bank were at their peak before the acquisition. The reputation and the profitability of Golden West Financial could take Wachovia to the heights of success. However, according to analysts, Wachovia could not get the complete benefit from this acquisition. It did not only get the geographical expansion but huge network, diversified product lines and much from this acquisition.  In fact the investors have called the Golden West Financial as a Crown Jewel for the company. Moreover, the United States housing industry was also booming during that time. However, in the history of banking and financial industry, this acquisition appeared as one of the giant acquisition.

In conclusion, World Savings Bank acquisition by Wachovia has been a successful acquisition however, Wachovia could have gained a lot of benefit from this take over. It has been provide from this take over that World Savings Bank is one of the leading banks of the world and investors are really interested to make their investments in this bank.