Wachovia shares drop on report

After surging Friday, Wachovia shares are headed back down today after a Morgan Keegan analyst urged investors to sell the shares.

In midmorning trading, the Charlotte bank's shares had fallen $1.90, or 10 percent, to $17.08.

Morgan Keegan said the stock's resurgence was uncalled for and that significant loan loss problems still lie ahead. The report precedes new Wachovia CEO Bob Steel's meeting today with analysts in New York.

The stock had jumped about 9 percent on Friday on rumors of a possible takeover by Goldman Sachs Group Inc., Steel's former employer. Steel has stressed plans to keep the company independent.