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Comments

7 responses to “Did Wachovia Grow Too Fast?”

  1. DM says:

    This story on the Global economy crisis came out yesterday in UK’s Telegraph. I thought this part was of particular interest…

    “… IndyMac will deplete a tenth of the $53bn reserve of the Federal Deposit Insurance Corporation. The FDIC has some 90 “troubled” lenders on watch. IndyMac was not one of them…”
    http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/07/21/ccview121.xml

  2. Spamboy says:

    They grew fast enough to start charging us outrageous fees that weren’t common when we first started with them, enough so that we bolted back to our old bank ASAP.

  3. MIssing Dots says:

    Wick, don’t you know better than to just read the headlines? $6.1B of that was a charge for declining asset values. I’m not saying that Wach is great position (but stock is up today as right now), but the devil is in the details.

    Next thing you’ll be telling us how much the Belo execs made last year because the headline said so. Instead of looking at the Summary Comp Table in the proxy and realizing the value is the company expense and not the value realized by the exec.

  4. Wick Allison says:

    I think Missing Dots’ point is that a charge for declining assets is not really a loss. I’m sure the 6,350 Wachovia employees who just lost their jobs appreciate his analysis.

  5. Nate says:

    If FDIC has to bailout IndyMac and other banks like WaMu, the Fed will have to create more money, which increases the national debt and decreases the value of the US Dollar even further. What’s crazy is that IndyMac is not in the same tier as WaMu or Wachovia. If any of the banking giants goes under, our economy will grow even worse long before it gets any better.

  6. Wes Mantooth says:

    WaMu isn’t going to need a bailout. IndyMac was so completely different from a large retail bank that it’s hardly worth explaining. Nearly all of the money at IndyMac was hot money; depositors there were reknowned for their flightiness.

  7. TLS says:

    All I know is that whenever I go into my local Wachovia branch I am the only one there. The greeter chick wears too much makeup and very low cut tops. The tellers look like they just spent the night clubbin’.
    Want to know where my branch is?