Posted on 12/26/2008 8:38:29 PM PST by rabscuttle385
In front of a ballroom full of N.C. bankers in January 2006, Wachovia chief executive Ken Thompson warned of the dangers of “toxic” home loans.
A problem with so-called option adjustable-rate mortgages, he told the group, was that homeowners can end up owing more at the end of the month than the beginning, which can be a “tough situation” for customers and lenders.
“I have literally been amazed at the terms offered by some mortgage lenders, thankfully not at Wachovia and thankfully not so much in North Carolina,” he said.
Four months later in May 2006, Thompson took a $24 billion plunge into the mortgage business by buying Oakland, Calif.-based Golden West Financial. Its specialty? The same loans he had cautioned against: option ARMs.
Wachovia, a brand known for conservative lending, had changed course and forged its biggest deal ever. Two and a half years later, the purchase has played a central role in the Charlotte bank's near collapse and its planned sale to San Francisco-based Wells Fargo. Shareholders vote Tuesday on the takeover.
(Excerpt) Read more at charlotteobserver.com ...
I can’t imagine having my money in a bank named (by sound) Walkovia, or the Big Brotherish Watchovia.
Yes. They were identified in the skit as people who should be shot.
They are truly despicable people and the MSM has covered up for them. The link below helps tell the true story.
http://www.americanthinker.com/2008/09/how_allies_of_george_soros_hel.html
The stupid media will never tell you that the owners of Golden West were big liberls that screwed the little man..
http://www.campaignmoney.com/political/contributions/herbert-sandler.asp?cycle=08
It’s not evil Republicans.
Good find. Sandler of Golden West was a big Odumbo supporter and financier. Herb Sandler financially supported ACORN while sending money to two PACs that supported Barry Odumbo.
Yes. I downloaded a copy of the skit before the Sandler’s were scrubbed from NBC’s online version.
Yes. I downloaded a copy of the skit before the Sandler’s were scrubbed from NBC’s online version.
WFC has a ton of HELOC loans (which get basically nothing now on a default since property prices have gone down so much)—they weren’t as conservative as you think.
“WFC has a ton of HELOC loans “
Every lender has a ton of those....
Not every lender has HELOCs primarily from CAL & Las Vegas. And I should note there are very few “financially sound” lenders left.
If this thing continues to unravel as it has, they'll need to be taken into protective custody. The "let them eat cake" mentality of spending millions in bailout money on bonuses and lavish parties alone should make them all pariahs.
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