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.


Anonymous said...

Mr. Skeptical...

You have the best analysis.

Keep up the good writing.

Independent Accountant said...

Thanks. However, I miss plenty. If four months ago you would have told me oil would be $78 a barrel, copper $2.19 a pound,the Dow at 8400, gold stocks down 65% and oil shares down 50%, I would have said you're joking. All this and a dollar bull market! I just can't see it. I think the dollar and dollar denominated bonds will crater. Jesse has posted on this recently at his blog.