First WaMu and now Wachovia is facing the prospect of selling itself or dying from the inaction and stupidity of the Hoover Republicans.
Wachovia is talking to potential buyers including Wells Fargo & Co., Banco Santander SA of Spain and Citigroup Inc., according to people familiar with the situation. Wachovia officials don't believe they need to rush into a deal, and the bank isn't feeling immediate pressure on its financial condition, people familiar with the company said.
From all accounts WB is supposed to have enough capital to stay afloat but you never know with credit markets frozen up like this. If there is a run on Wachovia like there was on WaMu then this will be the next bank to either sell itself or go under. And judging from this person's comments we have a case-in-point why Americans are totally clueless about anything economy related and should not be trusted to know what is best for them in this situation.
At a Chicago WaMu branch on Friday, Catriona Johnson, 27 years old, said she had come intending to take out all her money. "I wanted to close my account and hold it in my bra or something," she said. However, after being told that her account balance is federally insured, Ms. Johnson, the administrative coordinator at a Chicago company that tests homes for the presence of toxins, decided to leave the money alone for now.
Yup, she thinks her bra is the safest place where she can keep her money. This is exactly why discussions about LIBOR and interbank lending falls on deaf ears with many Americans. They see the $700 billion dollar price tag and then say its all going to Paulson where he will immediately spend it on yachts, bling-bling, and islands and stuff.
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