Diane Ritter

How Much Will a Wells-Wachovia Deal Cost Taxpayers?

Are you crazy? If the Citi-Wachovia merger had gone through the US would have been on the hook for up to $270 BILLION dollars worth of losses from Wachovia worst crap assets. Assets that are still being carried at far over actual value on Wachovia's books, and declining by the day. Including over $100 BILLION dollars worth of option adjustable-rate mortgages from it's doomed acquisition of Golden Western. 100% guaranteed and backstopped by Uncle Sugar. Wells Fargo is willing to take them for nothing, and you are worried about how it will help their tax write-offs? Catch a clue guy, corporate tax rates are on a sliding scale from 15% to 35%. Which means WORST CASE the US taxpayer just got off the hook for 65% of this fiasco.

Next Victim, Please!

Wachovia failing is good news. Bankruptcy isn't a symptom of the problem. Bankruptcy is the SOLUTION to the problem. If the FDIC would get the lead out and wade in there and close down the rest of the banks who's balance sheets smell to high heaven the whole crisis would evaporate. We don't need a mega dollar bailout. We need to CLOSE DOWN the rest of the problem banks and sell their assets to their competitors. Their healthy, well run, well managed competetors. And the sooner the better.