Wachovia had 70 billion in net worth.
Now Wells is prepared to buy the lot. No government assistance required.
I stand by my assertion that WaMu was solvent too - and if left alone would have survived. But Sheila never gave it a chance.
Sack Sheila Bair now!
7 comments:
What really chaps my hide is that now the Fed explicitly says they wants to protect creditors of WB; days ago they left senior debt holders of WaMu high and dry.
I agree with you this time, but make up your mind, you are all over the road on her.
How do you reconcile Wachovia's "solvency" with Wells Fargo stating they expect to take $74 billion in losses from the WB assets (a number much greater than WB's most recently reported tangible book)?
Absolutely! Bair continues to pathologically cram unsavory actions into her private Pandora's Box. This opaque sorcery has no place among the affairs of free men and women. At this stage Bair's termination alone would be grossly insufficient. Since we're so far off the playing field as it is--and inasmuch as this Wells Fargo deal serves as precedent--I propose we introduce the power of "Transaction Rollback" to the Judiciary.
I agree the FDIC shouldn't have been involved at this early stage, but "solvent" certainly has to be qualified. Wachovia does have $300B or so of extremely doubtful loans.
Hey - Wachovia found a buyer without Government intervention. Its unlikely to have negative net worth - if you can find a buyer in this - the worst of markets.
The Dead Collector: Bring out yer dead.
[a man puts a body on the cart]
Large Man with Dead Body: Here's one.
The Dead Collector: That'll be ninepence.
The Dead Body That Claims It Isn't: I'm not dead.
The Dead Collector: What?
Large Man with Dead Body: Nothing. There's your ninepence.
The Dead Body That Claims It Isn't: I'm not dead.
The Dead Collector: 'Ere, he says he's not dead.
Large Man with Dead Body: Yes he is.
The Dead Body That Claims It Isn't: I'm not.
The Dead Collector: He isn't.
Large Man with Dead Body: Well, he will be soon, he's very ill.
The Dead Body That Claims It Isn't: I'm getting better.
Large Man with Dead Body: No you're not, you'll be stone dead in a moment.
The Dead Collector: Well, I can't take him like that. It's against regulations.
The Dead Body That Claims It Isn't: I don't want to go on the cart.
Large Man with Dead Body: Oh, don't be such a baby.
The Dead Collector: I can't take him.
The Dead Body That Claims It Isn't: I feel fine.
Large Man with Dead Body: Oh, do me a favor.
The Dead Collector: I can't.
Large Man with Dead Body: Well, can you hang around for a couple of minutes? He won't be long.
The Dead Collector: I promised I'd be at the Robinsons'. They've lost nine today.
Large Man with Dead Body: Well, when's your next round?
The Dead Collector: Thursday.
The Dead Body That Claims It Isn't: I think I'll go for a walk.
Large Man with Dead Body: You're not fooling anyone, you know. Isn't there anything you could do?
The Dead Body That Claims It Isn't: I feel happy. I feel happy.
[the Dead Collector glances up and down the street furtively, then silences the Body with his a whack of his club]
Large Man with Dead Body: Ah, thank you very much.
The Dead Collector: Not at all. See you on Thursday.
Large Man with Dead Body: Right.
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