Posted on 09/29/2008 5:39:46 AM PDT by FlameThrower
What is the status of all that preferred stock that Wachovia has issued?
So long, Walk-all-ovah-ya.
I’m right in the middle of getting a mortgage from Wachovia. I don’t understand these matters enough to know if our mortgage loan will be affected.
When all of this shakes out there will be 3 banks. Chase, Citi, and Wells Fargo.You forgot Bank of America, and last time I checked, 4 competitors does not make a monopoly.
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Because the FDIC is BROKE and cannot do its job !!!
That was only adding the post-Glass-Steagall wave. Banks had been consolidating like mad for the decade before that, as intra-state branching was expanded and interstate banking allowed. In fact, efficiency in bank mergers and acquisitions was routine and a major requirement for success in the banking industry. Likewise, overnight bank closings and regulator-arranged acquisitions have long been a part of their world.
But you’re sure right about Citigroup, they were the poster child for the ‘too big to fail’ policy in banking 20 years ago. Banking’s been so heavily regulated that regulators are used to coercing individual banks to do pretty much whatever the regulators deem necessary for the industry.
But you’d need a truck to buy a car
Because of its size and inertia? I thought BoA was very heavily leveraged, almost as much as WaMu was.
And Biden has BoA's back, right?
So how many banks will be left when all of this is done?
This is its job!
The banking industry has been consolitdating since 1985; the defense contracting industry has been consolidating since the early 90's. An analogy that one of our executives used was pigs at a trough: when there are too many pigs at a trough, the only way for any of them to stay healthy is for some of them to starve (or be made into bacon).
When basic economics is no longer required for a HS diploma (or even a liberal arts bachelor's degree) it's little wonder that so many people don't know the difference between a monopoly and an oligopoly.
Yeah, the convenience of being able to access your account funds from any of the thousands of ATMs across town is so overrated.
I think Bank of America will be around—mostly because they have so much operations worldwide.
How is Wachovia Securities capitalized? It wasn’t a stock traded seperate from the bank. I wonder where its operating capital is will from.
I do not support any bailout of these institutions as a general principle. If it must be done, it should be the job of the Federal Reserve or the Treasury rather than the FDIC.
“I do not support any bailout of these institutions as a general principle. If it must be done, it should be the job of the Federal Reserve or the Treasury rather than the FDIC.”
Please explain what institution has been bailed out? Wachovia is no more. There is a potential future loss to the deposit insurance fund, but it was at risk if Wachovia failed. And why do you say the FDIC ought not to be involved when they so obviously already are. They have the deposit insurance liability. Why not try to mitigate those losses as they so expertly doing now?
It was on it's way there according to it's share prices on fridays close.
IMHO, the consolidation across industries is a rational response to increasing need to counter the growing power of governments both domestic and global. The Globalization of all markets is another reason for consolidation.
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