Wachovia's End

Yep. It happened immediately to Wachovia.

What's funny about the article is the comment that he had to tell the 80000 employees wachovia didn't fail. Technically, it didn't - but then nothing can be allowed to. For practical purposes, it failed. That was some fucked up shit.

My deposits never exceeded FDIC amounts, so I wasn't worried. Naive?

 

They all fail. If they didn't fail they wouldn't be bought/acquired/sold, etc. It's just semantics.

Not naive I don't think. The FDIC insurance is one of the main reasons we haven't entered into a depression as it has prevented a run on most of the banks.

 

However--I would be very interested to know how much coverage would actually be provided depositors if there WAS a run on the banks. Bet the FDIC would not be funded nearly enough.

 

The FDIC would immediately drawn on a HUGE line of credit it has with the Treasury. I'm talking billions.

 

Absolutely. And the average Joe wouldn't care as long as he got his money. But--it would devastate the economy. Maybe not immediately, but it would. Another example of how government agencies get screwed up.

 

Not anymoer than the billions already "borrowed" from China, etc. Of course, we don't know yet how that is going to end other than Obama is now overseas talking to his bankers, who hold all the cards, errr.. debt.