The headline:
SAN FRANCISCO (MarketWatch) -- Wachovia Corp. said on Monday that it won't offer mortgages with negative amortization features anymore, one of the main types of home loans offered by Golden West, the mortgage giant the bank acquired for $24 billion roughly two years ago.
This is a race: whose head is further in the sand, Wachovia or Barclays?
I wrote here how Fifth Third does not originate neg-am mortgages. Fifth Third (who have now contacted me) have not written such mortgages for years. The IR guy can't actually confirm that they ever wrote them.
Why are Fifth Third and Wachovia even mentioned in the same breath when it comes to difficult (multi) regional banks?
Search me.
What are your thoughts in Wachovia in general?$120b in pay option in bubble states could potentially blow up big on their face, total losses. assuming a 30% default rate with 30% recoveries gives a $25b loss
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