Wachovia

Before I reply to your post, I have to give two caveats: I am not a stock analyst and I detest single stocks (I hold one single stock and there is a story behind that one and everything else is in mutual funds). So take this for what it is worth which may not be anything.

That being said, be wary of NCC. I've heard they could be the next IndyMac. Everything I've read of them has them in just terrible shape. So, you could make a profit from it or you could be looking at an 8 cent stock (like IndyMac's is right now).

 

Thanks for the advice. I was kinda wary of NCC to begin with, that kinda confirms it.

A lot of what I've read makes WaMu out to be just as big a turd.

 

WaMu is also regulated by the OTS, just like IndyMac was, so take that for what it's worth. National City is regulated by the OCC, the same regulators that look over BofA, Wachovia, etc.

 

BTW, ironically, if you had bought IndyMac at 7 cent you would have doubled it today as it is up to 14 cents. I may get to a point one day that I just set aside some play money and do stuff like that but never with anything I might want to live off of one day.

 

KISS......

...."keep it simple stupid"!......the greedy ass lenders were "oh so happy to lend sub-prime"!!!! ....Now they're blaming eachother, all the while charging off loans. SOOOO, Uncle Sam comes in to try to regulate! Although that sucks to me and others who did not buy over our heads or who were not invested in Bank A, B, or C. We recognize the macro economic approach by the feds is a must to fend off the foreclosure virus the bank doctors created for themselves! PHHLLLGGGHHHHH!!

 

9 Billion? Damn!

http://money.cnn.com/2008/07/22/news/companies/wachovia/index.htm?cnn=yes

BTW, 5% tier one leverage ratio is considered well capitalized. 4% is adequately capitalized. Not sure what those analysts mentioned in the article are referring to.

Rut row: Wachovia going to slash 10,750 jobs of which 6,350 are active positions.

 

6.1 Billion of that was a Goodwill charge (which I will honestly say I don't understand) so it was essentially a 2.8 Billion loss which was in-line with expectations. Slashing jobs and dividends.

 

bye bye to all of those GW folks in Texas. 17,000 men enter, 1 man leave.

 

damn.

 

The goodwill impairment consisted of $4.5 billion in reduced value of commercial loans, plus $597 million in investment-banking assets. Not sure what the rest was. The scary part is this impairment DID NOT include its Golden West business.

Goodwill is basically what one pays for something greater than that somethings actual value. For example, if I pay you $5 for something that is worth $1, then I have $4 worth of goodwill. It's sort of a premium. In the past, companies could ammortize goodwill over something like 40 years, now, they can't amortize any goodwill. Hence, the writedowns.