[proxy_user]

So why did Wells take Wachovia, even if for very little money? They must have thought the underlying businesses would be worth something someday.....if the ever manage to make it alive to someday.

[javachip]

So why did Wells take Wachovia, even if for very little money?

Wells does believe Wachovia will contribute to earnings within a year or two.

They were in negotiations with the FDIC at the same time as Citi. Citi looked like the winner (if you can call it a win). Then a tax change dramatically increased the tax benefit of Wacky bank's losses. I believe the change is worth something like $70+ billion to Wells over several years.

[Arizona Carolyn]

Buffett sunk a hunk of change in it ... and GE... and Harley... the former gets TARP and the latter stimulus.