Gerry Sullivan

Banking on Wachovia As a Bailout Trade

Wachovia common stock is probably toast. On friday several issues of Wachovia debt were offered at 35 to 50 cents on the dollar. With the Wamu debt having been wiped out in the Chase deal this debt was very risky.

I tried (and failed) to buy the Aa3 rated 1st Union Nat Bank Charlotte debt. Now I wish I had been more aggresive in my attempt as I think it will become Citi or Wells Fargo debt.