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    • Wachovia: Buyable? [view article]
      Because of promises made to the long term investors and retirees that rely on that dividend. Unfortunately, WB management lost sight of these continued promises and representations and began trying to grow their way into a home run. They were intoxicated by the mid fifties stock price. On the other hand, many insiders saw this as an aberration and sold in the high fifties while investor relations was touting that WB should be worth $60 in short order. Unfortunately not enough of us acted on this counter indicator and have paid a high price. Jul 13 01:54 PM
    • JP Morgan Offer for Wachovia Makes Sense [view article]
      WB/FTU has always been a strong and successful operational entity with generally good management, but its senior decision makers have regularly fallen prey to their own need to "hit a home run" and "don't miss the train" insecurities. Unfortunately, executive management long ago fully bought into the accounting treatment that allowed the immediate recognition of revenue through securitization and sale of assets. I would venture to guess that an insider had developed models to move the Golden West portfolio profitably before the GW purchase and certainly before the sub prime melt down. They forgot the lessons from "The Money Store" purchase and took confidence in the over heated collateral values of GW's "Pick-a-Pay" portfolio. Live by the sword, die by the sword (i.e., mark to market accounting). However, this illiquid market will pass and the value of the loan portfolio, while not completely, will recover. $24 bucks would be a bargain for this franchise.

      Regardless, WB needs a strong, independent executive that will call "bull" on short term revenue schemes and stick to the banking businesses that provide steady returns. Dimon certainly would fit that bill.       Jun 25 07:58 PM
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