hunter

Did Buffett Kill the (First) Wells Fargo-Wachovia Deal?

If the rescue package passes congress the citi buy of Wachovia is far from a done deal. Wachovia employees should consider taking over Wachovia even take pay cuts to save the company. This deal was hastly done and the shareholders should vote it down. Supposedly Wachovia had above required capital and liquidity. What got Wachovia was the CDS's, JPM write down of 31 billion of the WAMU mortgage portfolio,and the mark to market accounting that will be relaxed in the rescue bill. The banking industry needs Wachovia to survive to keep competition in the market. If Wachovia is no longer it will bad for consumers if there are only three big banks Citi,JPM, and BAC. The employees should take pay cuts just like the airline industry and take control of Wachovia. Once they have control they need to get rid of the idiots in Mgt that got them in the shape they are in. Once the 700 billion bill passes Wachovia can move their toxic mtg loans off their books into the Govt fund. This will enable them to start doing business as usual again.