Wells Fargo and US Bancorp - Hitch a Ride with These Two [View article]
the real problem stems from the oversupply in housing coming from several fronts: new starts, resales, foreclosures, recently finished ones. As long as the oversupply in housing persists the financial sector will have a long pain to suffer, its just as simple as that.
Looks like Wachovia got rid off the prior toxic risky wasted bank subsidiaries and kept the good ones. Now it can start from scratch to build a new banking subsidiary with safe practice together with its remaining good outstanding subsidiaries. The current subsidiaries of Wachovia make it look like "Merrill Lynch without the toxic risky waste", good job from management it separated the good bank from the bad bank overnight, plus its CEO Bob Steel is one of the top rated mutual fund managers. Wachovia will keep the valuable human resources and the talent that have expirience in the banking business saving them for the new banking subsidiary. Buying the municipal bonds or the auction rate securities will give the inflow of cash as long as its hold even to maturity, so the prospects are good.
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