Saturday, October 11, 2008
Terminating Wachovia Death Watch
"Citigroup Inc. acquired most of Wachovia Corp. for nearly $2 billion in a government-engineered takeover that shows how quickly once-mighty U.S. banks are succumbing to a growing mountain of bad mortgages and other loans. ... As part of the deal, Citigroup will inherit a $312 billion mortgage portfolio saddled with bruising losses. Citigroup's future losses on those loans will be capped at $42 billion, with the government agreeing to absorb any additional losses", David Enrich and Matthew Karnitschnig at the WSJ, 30 September 2008.
Boy, that was quick. Wachovia didn't even have three months as a separate entity under Robert Steel. See my 25 July 2008 post on Wachovia. Wachovia ultimately was acquired by Wells Fargo.