by Calculated Risk on 6/25/2008 12:08:00 AM

From MarketWatch: Wachovia hires Goldman to help sort loan portfolio (hat tip Mark)

Wachovia Corp. said Tuesday that it has hired Goldman Sachs Group to review its loan portfolio, another sign that the bank is bracing for further mortgage-related trouble when it reports earnings next month.
...
Wachovia has written down more than $5 billion in bad investments over the last year ...

The key problem for Wachovia is the $120 Billion Pick-a-pay portfolio (Option ARMs) that came with the Golden West acquisition in 2005.