Big Al45

Wachovia Deal: A Home Run for Citi

The FDIC's actions show that no bank stock is safe except for the favored four (Citibank, JPM, WFC, and BAC). If you're a shareholder in any other bank, you're one bank run away from having your equity position destroyed.

Either Steele is a first class liar or a concerted bank run destroyed his recovery plans. It would be very interesting to know who pulled their deposits out of Wachova and whether these people had short positions in WB. The SEC should investigate this, but they won't. I'm sure the right people in DC have been paid off.

Short This is how the WB story ends. The remainder gets bought by Morgan Stanley for $1.50 in stock, Steele gets to be the next CEO of MS (and recover his $15 million WB investment loss in 18 months); four clowns from the WB board get to join the join the MS and Citi boards, and the WB shareholders get the magnificent sum of $2.50 a share.

Isn't capitalism wonderful.