Another Big Bank Bites The Dust

bethesdamadmanSeptember 29, 2008

The FDIC announced this morning that it had brokered a deal for Citibank to buy Wachovia.

That's a much better outcome than the Feds having to rush in and use its funds to take it over to avoid a run on the bank by depositors.

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qdognj

What amazes me is these banks,Wamu,Wachovia,et al, are toast because of "toxic" loans, yet,it has been stated that only 4% of outstanding loans are in trouble or in arrears...So something doesn't jive here...the good thing with all these bankers and their executives losing their jobs, there might be more people available to cut lawns and pour slurpees and ask if i want fries with that order ;)

    Bookmark   September 29, 2008 at 9:26AM
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rockmanor

"...the good thing with all these bankers and their executives losing their jobs, there might be more people available to cut lawns and pour slurpees and ask if i want fries with that order ;)"

When you know people who've been adversely affected by these situations, it's not so humorous. A lot of good people, at all levels, have lost their jobs through no fault of their own.

I've witnessed a lot of gloating over job loss, or potential financial ruin, of fin. svc./banking employees. It's very ugly.

I do agree with the OP that the C/WB deal is far better than the alternative.

    Bookmark   September 29, 2008 at 9:48AM
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cordovamom

My son-in-law is in finance, got his start with Wachovia actually, but switched jobs a few years ago. He's not a big wig pulling in millions of dollars a year, he's just 27 years old and trying to make a living in an ever changing financial world. So while the big guys at the top were raking in millions of dollars and securing their futures with golden parachutes, regular employees like my son-in-law are the ones that have to worry about making their own mortgages if they lose their jobs due to folly at the top.

    Bookmark   September 29, 2008 at 9:59AM
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logic

cordovamom: "My son-in-law is in finance, got his start with Wachovia actually, but switched jobs a few years ago. He's not a big wig pulling in millions of dollars a year, he's just 27 years old and trying to make a living in an ever changing financial world. So while the big guys at the top were raking in millions of dollars and securing their futures with golden parachutes, regular employees like my son-in-law are the ones that have to worry about making their own mortgages if they lose their jobs due to folly at the top."

Exactly. That said, I do agree with Qdognj on this statement: "What amazes me is these banks,Wamu,Wachovia,et al, are toast because of "toxic" loans, yet,it has been stated that only 4% of outstanding loans are in trouble or in arrears".

This why I believe there is far more to this whole thing than will ever meet the eye...I would not be at all surprised to someday learn that they perhaps "creatively" lumped losses from many other ill conceived and irresponsible "bets" into the total....after all, who would really know..as they claim to not have a clue how to value the junk?

Way too many people made millions if not billions off of this scam over the last few years....and therefore have every incentive to keep a zipped lip about the real deal..

Remember when Dubya was pushing to privatize SS? That was just another way to give Wall St. more money with which to play..

We now all see how well THAT would have worked out...just as the boatload of other failed policies of his admin.

He's is no brain child...but even HE had to know that most of his admin's policies were bad for the country...but, they were carried out..which meant that somehow, somewhere big money was being made off of them by certain entities...and big money is what fuels Wall St.

Points to ponder...

    Bookmark   September 29, 2008 at 11:06AM
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qdognj

my quote of

the good thing with all these bankers and their executives losing their jobs, there might be more people available to cut lawns and pour slurpees and ask if i want fries with that order ;)"

was tongue-in-cheek..and directed to the highly-compensated,who took huge risks without consideration of the consequences..

clearly there will be hundreds,if not thousands of mid-level employees who will need to find new employment,and don't have a "parachute" of $$$ to hold them over...

    Bookmark   September 29, 2008 at 11:20AM
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