Why would anyone want to merge with Wachovia? Their lending portfolio probably looks very similar to Lehman’s.
Isn't Wachovia a commercial bank, rather than an "investment" bank like Lehman Bros?
My understanding is that commercial banks have much tighter rules and lending practices than the largely unregulated investment banks, and thus did not go hog-wild in purchasing mortgage backed securities.
Yes, Wachovia has an 'investment' securities branch (similar to Merrill Lynch) but I believe the entire company is anchored much better than a sole investment bank such as Lehman.