Wachovia and Golden West?

The WSJ and NYTimes are reporting that Wachovia may be in talks to acquire California's Golden West Financial. Golden West, a California-based savings and loan institution with over $120 billion in assets. The deal, which is being speculated at a value of $26 billion, would give Wachovia access to the fast growing West Coast, but also increase its exposure to the mortgage industry. With discussions broiling that the mortgage industry could be on the decline, the deal could be considered good timing for Golden West, and perhaps, a curious acquisition by Wachovia.

"Golden West operates World Savings Bank, and has 283 savings branches in 10 U.S. states, but is best known as an adjustable-rate mortgage lender. It has lending operations in 39 states."