GET YOUR MONEY OUT OF WACHOVIA NOW

javascript:void(0)
bump

I concur. They likely are next up. Bail.....

Oh shit!!! My company's payroll goes thru these SOB's!!!!

I also agree this is sound advice---

Already under way.

Wachovia is getting hammered as we speak.

look!

[link to money.cnn.com]

Washington Mut Inc 1.00 -94.00
Washington Mut Inc 0.06 -1.49
Washington Mutual Inc 0.16 -1.53
Wachovia Corp New 8.08 -5.07
Federal Home Ln Mtg Corp 1.75 -0.98
Glg Partners Inc 0.46 -0.24
Wachovia Pfd Fdg Corp 7.00 -3.52
Wachovia Cap Tr X 10.49 -5.01
Downey Financial Cor... 2.67 -1.23
Federal Home Ln Mtg Corp 1.85 -0.85
Sadia S A 10.52 -4.75
Wachovia Corp New 425.00 -175.00

they are an investment bank so if you have a joint account you are covered up to 200K

Fuck it. Bail.

Wachovia Slumps After WaMu's Seizure, Bailout Impasse (Update3)

By Linda Shen and David Mildenberg

Sept. 26 (Bloomberg) -- Wachovia Corp. and National City Corp. slumped after negotiations on the government's financial bailout stalled and Washington Mutual Inc. was seized by regulators and sold to JPMorgan Chase & Co.

Wachovia dropped $3.13, or 23 percent, to $10.57 at 11:05 a.m. in New York Stock Exchange composite trading, and Cleveland- based National City fell 25 percent leading banks lower. National City and Charlotte, North Carolina-based Wachovia have plunged more than 75 percent in the past 12 months.

``Washington Mutual showed that one of the big ones can go down, and if you are looking at who else in the top 10 is facing the most pressure, Wachovia is right there,'' said Stan Smith, a banking professor at the University of Central Florida in Orlando.

WaMu was taken over by regulators yesterday in the biggest U.S. bank failure after customers of the Seattle-based lender withdrew $16.7 billion from accounts since Sept. 16. The savings and loan was ``unsound,'' the Office of Thrift Supervision said. The collapse came as lawmakers planned to meet again after talks on Treasury Secretary Henry Paulson's bailout reached an impasse.

Fears of mounting losses on Wachovia's $122 billion in option adjustable rate mortgages has helped push the company's shares down by 64 percent this year before today's trading. Chief Executive Officer Robert Steel is treating the loans as distressed debt and named a senior bank official, David Carroll, to lead an effort to minimize losses on option ARMs that the bank expects to total about $14 billion.

`Extremely Valuable'

``We are focused on managing our company and serving our customers with excellence,'' Wachovia spokeswoman Christy Phillips-Brown said. ``Our core franchises - retail banking, the nation's third largest brokerage firm, wealth management and our commercial and corporate banking activities - are extremely valuable and continue to operate well relative to our competition.''

In addition to its option adjustable-rate mortgages Wachovia had $45 billion in more traditional mortgages as of June 30. That total of $167 billion ranks second among U.S. lenders behind Bank of America Corp.'s $239 billion, followed by Citigroup Inc.'s $145 billion, according to an Oppenheimer & Co. report.

``All eyes are now on Wachovia,'' said Anton Schutz, president of Mendon Capital Advisors Corp. in Rochester, New York.

Wachovia became the largest option ARM seller through its $24 billion acquisition in 2006 of Golden West Financial Corp., the Oakland, California-based lender that popularized the product over the previous 30 years. Wachovia expects cumulative losses of about 11 percent to 12 percent on its option ARM loans.

California Losses

Merrill Lynch & Co. analyst Edward Najarian expects the losses to be in the 15 percent to 17 percent range, according to a Sept. 9 report. Housing prices in California declined by a record 41 percent in August, the 11th straight monthly fall, the California Association of Realtors said yesterday. Almost half of Wachovia's option ARMs are in California.

Option ARMs allow borrowers to skip part of their payment and add that sum to their principal. Monthly costs eventually increase after introductory interest rates as low as 1 percent.

Because typical option ARM borrowers make less than the full payment each month, according to Fitch Ratings, they don't build equity in their homes. When house prices fall, borrowers often owe more than their homes are worth. That leaves lenders facing losses if the loan defaults.

Paulson's Plan

``A bailout plan needs to be approved as credit markets have frozen, credit spreads have widened and it's getting more difficult for businesses and consumers to get access to credit,'' said BMO Capital Markets analyst Peter Winter in a note to investors today.

Wachovia's shares advanced last week on speculation it would be a beneficiary of the Treasury's rescue plan. The company's option ARMs may be simpler to sell to the government than securitized pools of loans, said Kevin Stein, associate director of the California Reinvestment Coalition, a San Francisco-based nonprofit. Wachovia holds the loans on its balance sheet, while WaMu and other big option-ARM lenders pooled the loans into securities that were sold to investors, he said.

``If Wachovia could unload a third or a half of its option ARM portfolio without taking a major hit to earnings, that would be a very positive development,'' said Gerard Cassidy, an analyst at RBC Capital Management in Portland, Maine. ``Whole loans are a lot easier for the government to buy than CDOs or CDO squared,'' he said, referring to collateralized debt obligations.

Washington Mutual

At the time of its failure, WaMu had $28.4 billion in outstanding bonds, with Capital Research and Management the largest debt-holder, Bloomberg data show. All three major credit agencies rate WaMu junk, the only company in the 24-member KBW Bank Index that's below investment grade.

Wachovia has investment-grade ratings from Moody's Investors Service, Standard & Poor's Corp. and Fitch. Moody's and Fitch have a negative outlook on the lender, indicating a possible downgrade.

During the past three quarters, WaMu lost $6.3 billion. It kept skidding even after joining a list of financial companies the U.S. Securities and Exchange Commission protected from short selling in an effort to stabilize stock markets.

To contact the reporters on this story: Linda Shen in New York at [email protected]; David Mildenberg in Charlotte at [email protected]
Last Updated: September 26, 2008 11:22 EDT

Who is going to cover us the Fed's?

The Fed's are broke!

They are on a lifeline now; one more goes under it's all over folks.

hows bank of america doing today?

Fed jut put in another 13 Billion today. Out of thin air they created this and will charge interest on it.

Pin this!!!

Chase purchased WaMu and would have regardless what the government did. NO ONE with money in WaMu lost any money.

As I understand it, the FDIC seized WaMu and brokered a deal fro J.P. Morgan/Chase to purchse it pennies on the dollar and WaMu shareholders were wiped out in the process. Was that not correct?

Yes, In fact they made the retarted claim that the FDIC COLLECTED 1.5 billion...

as if...

I don't know. Regardless, the deposits were not lost.

In terms of what the Washington Mutual takeover means to regular people, the company's employees won't feel any immediate impact (they'll report to work as usual today), customers can still get to their cash, but shareholders will lose out.

Here's how it breaks down, according to the Seattle Times (WaMu is a Seattle-based company):

The $1.9 billion that JPMorgan paid for WaMu's operations will go into a fund overseen by the FDIC for WaMu's creditors. The only investors likely to get anything will be holders of WaMu's senior unsecured debt. With $7 billion of that outstanding, those investors are looking at a payout of around 27 cents on the dollar. Stockholders will get nothing, as will holders of more than $11 billion in WaMu subordinated debt and preferred stock.

Shareholders of the company's stock (symbol WM) already saw shares plunge from nearly $40 a year ago to $4 in early September. The stock dropped to $1.69 yesterday and was trading around $1.50 this morning.

[link to www.usnews.com]

"We're in favor of what the government is doing, but we're not relying on what the government is doing. We would've done it anyway," JPMorgan's Chief Executive Jamie Dimon said in a conference call Thursday night, referring to the acquisition. Dimon said he does not know if JPMorgan will take advantage of the bailout.

[link to news.yahoo.com]

Wachovia CDS spreads are blowing out



this puppy is going down

Bear raid. They likely will not last the day without some sort of intervention.

Makes you wonder if their stalling the bailout bill on purpose

My banker told me 3 weeks that Wachovia WAS GOING DOWN.

yup when it gets to this point its irreversible and confidence is shaken


theres nobody left to buy them

FDIC will have their hands full

-hope Wells Fargo ain't in the top ten!

how is BofA doing? Been hear some rumours on them going down soon. I thought they were pretty solid.

Good question! I heard that rumor too.

BOA is not going ANYWHERE.

it is up 50 cents today as is JP Morgan.

Wells Fargo is another safe bank.

These 3 will remain standing.