News: Wachovia's Next (bankrupt, accounting, buy, interest)

[Nor'Eastah]

Wachovia is in talks with Citi for a merger; if it doesn't come to pass, they'll look for someone else. Citi itself has problems. Watch - this will all come down to just one giant left standing - JPM, the gov'ts lap-dog.

Wachovia, Citi in Merger Talks: Reports - TheStreet.com

[car54]

Isn't the smart thing to do is wait until FDIC siezes Wachovia and then buy the good parts for a song? ....ala WaMu/JP Morgan Chase?

[Nor'Eastah]

Originally Posted by car54

Isn't the smart thing to do is wait until FDIC siezes Wachovia and then buy the good parts for a song? ....ala WaMu/JP Morgan Chase?

Yup, but Wachovia is putting itself up for bid, hopeful that a suitor will be interested. If no one is, then the route you describe will be taken.

Any way you look at it, "Wachovia's next".

[jimmyP]

I just don't think anyone, especially Citi, is in position to buy a bank like Wachovia today. With mark to market accounting rules, the immediate results will be a huge write down which Citi can't take now. Better to follow JP's strategy, let them go bankrupt and just buy the assets like deposits and branches. The liabilities will end up with you and me.