Wachovia’s stock hit $8.02 on Friday from its 52 week high of $52.25. Will Wachovia be bought by the Citi group? Is Wachovia last on the bailout list? Sunday’s announcement of $700 billion will boost the market, but how soon will the cash injection and bailout take place?
Wachovia, National City or Downey Financial, which one will go Bankrupt first?
Wachovia,
Unlike wamu has many assets they can unload to raise capital and avoid bankruptcy like wachovia securities that is a profitable branch of the company in no way connected with the mortgage woes that would raise a lot of interest…having said that, unless confidence returns to banks (and i don’t think it will for a few months/years) wachovia best bet is being bought by another bank with solid a balance sheet to avoid a run in the bank like what happened with wamu…so on that note i don’t think citi is a good fit considering their balance sheet is just as screwed up as wachovia…wells fargo makes much more sense considering one has a strong presence in the east coast the other in the west, little overlap and wells fargo has a clean enough balance sheet to be able to take the hit of wachovia option arm mortgages.