Surprise: Wachovia Buying Golden West

Wachovia Corp. struck a deal over the weekend to buy Golden West Financial Corp. for about $26 billion in cash and stock, placing the combined institution squarely among the top 10 in residential servicing and production.The Charlotte, N.C.-based Wachovia, a bank, has shown a growing appetite for mortgages over the past few years, and its purchase of GWF -- the nation's second-largest thrift -- could serve as the first real sign of rapid consolidation in the mortgage finance industry. The Oakland, Calif.-based GWF, the parent of World Savings, is also one of the nation's largest adjustable-rate mortgage lenders. For decades the thrift has been managed by co-chief executive officers Herbert and Marion Sandler, who steered the company through the turbulent waters of the savings-and-loan crisis. According to the Quarterly Data Report, Wachovia ranked 12th in residential production last year, funding $58.1 billion. GWF ranked 15th, with $50.5 billion. Combined, they ranked sixth, with a market share of 3.27%. The companies can be found online at http://www.wachovia.com and http://www.worldsavings.com.