And there goes Wachovia
We knew it was coming, of course.
Wachovia becomes latest U.S. bank to seek lifeline
Excerpt:
As concern spread on Friday that more banks might run into trouble even with a US$700 billion rescue for the financial system, Wachovia, one of those hardest hit by the housing crisis, became the latest to reach for a lifeline.
Weighed down by a huge portfolio of troubled mortgage loans, the country’s fourth-largest bank by assets entered into preliminary deal talks with Citigroup, and extended feelers to Wells Fargo and Banco Santander of Spain, people briefed on the matter said.
The talks were at an early stage and there was no certainty of a deal. But it appeared Wachovia was seeking potential alternatives should the bailout plan being debated in Washington not pass quickly, or fail to provide enough help.
In other words, Wachovia is working on a plan to use in case there's no government bailout. So, there are things that can be done in the private sector to deal with situations, without the U.S. Taxpayer coming to the rescue. Well, that's nice to hear. Who knew?? :/
Excerpt:
CHARLOTTE, N.C. — Wachovia Corp. has begun preliminary merger talks with Banco Santander of Spain, Wells Fargo & Co. of San Francisco and Citigroup of New York, the Wall Street Journal and New York Times reported Friday, citing people familiar with the matter.
(...)
Saddled with mortgage losses from its 2006 Golden West Financial Corp. acquisition, Wachovia has been perceived as one of the nation's more troubled financial institutions. But in recent months, Steel has been taking steps to cut costs, shed troubled loans and preserve capital. He investigated a merger with investment bank Morgan Stanley & Co., but those talks apparently broke off this week.
Uh, talks with Morgan Stanley broke off this week? Yeah, I wouldn't expect talks with Morgan Stanley to get very far...
Why should anyone talk to them?
When they can just wait for the FDIC to shut them down and then scoop them up at death bed pricing! It's called a financial coup. And gov't won't care that there is a ceiling on how much 1 bank can hold (10%?). It's all a money grab to get all the money in the hands of a very few.