Wachovia

Stock is down another 8% right now around 13.

They won't be allowed to fail. The Fed would do another Bear Stearns deal before they let Wachovia fail. But, someone will get them cheap. Clean out the corporate mess there and with their good branch network and customer ratings, you got a dang good deal in the low teens.

 

Key down to 10 from 32. Ugh. Sticking with it.

 

they were a good bank before "merging" with First Union

 

Wachovia had credit issues but I agree, FU has a way of fucking up just about everything it touches.

 

Don't think the Fed would be needed as someone like JP Morgan or Wells Fargo could gobble up Wachovia.

 

VA, I think they would too but the Fed especially wouldn't let them fail regardless. They'd broker a deal with someone before Wachovia failed.

BTW, FACT on the First Union piece. When I was there, you could always tell the difference in Legacy Blue and Legacy Green people during meetings. Legacy green walked on water and could do no wrong. Ironic since they ruined FU's name and now are ruining Wachovia's name.

 

Down another 6-7% today. I still don't think we've seen bottom yet with WB. I think they will tell people that they don't see a profit for the next 3 quarters either.

In a sick and twisted funny bank stock moment, I saw one analyst put his price target for IndyMacBank at $0. LOL! Thought that was funny.

 

Seeing as how Indymac has exited the mortgage business...and they are a mortgage company...what the fuck do they do now?

 

I've heard that the shit from the Pick-A-Pay loans hasn't even really started coming out yet. EVERY bank got out of that shit over a year ago. Wachovia continued. These are worse than any subprime loan.

Prediction I hope does NOT happen. They sink to $4 and are bought out @ $5.

 

Freakshow, IndyMac is claiming they will focus on their Reverse Mortgage business. Seems like a weird focus when they are cash strapped already (and I know the fees on those things are insane but still seems like they wouldn't see it cash-wise until the person dies and the home is sold).

Yeah, the bad thing about their Pick-A-Payment mortgage is that it couldn't (or wasn't) re-sold on the secondary market so they hold all of them in-house. Just an insane product that looks great in high appreciating markets but terrible in today's environment. And I agree with your take on the stock price. I could definitely see them bottoming out around 4 or 5.

And yeah, it hasn't all come out with those loans yet. Ken T. was trying to say they were half-way through the Pick-A-Payment mess before he was let go and that just simply isn't true. They'll be lucky to be half-way through by 1Q 2009.