Wachovia's mistake spotlights Countrywide deal
Jun 4, 2008 | Posted by: roboblogger | Full story: Herald & Review
In this Feb. 21, 2008 file photo, Wachovia CEO Ken Thompson talks to employees at the bank's corporate headquarters in Charlotte, N.C. Wachovia's board of directors has asked Chief Executive Ken Thompson to ...
In 25 years I have never seen such miscues like Thompson's. And LANTY SMITH should also go. Did he support the Golden West purchase?
This purchase was done in a few days. Why? What have we not been told? Golden west was giving away money to anyone who could sigh a loan paper. And everyone knew it.
THOUSANDS may loose their jobs in Charlotte. The good-ole-boy network that elevated Thompson and gave Governer Easley has been at work for some time at Washovia. Unfortunately the shareholder are the ones that will loose the most followed by employees. Thompson and his cronies are walking away with millions. He should be ashamed.
One final question. When it was discovered how poor the loans were that Golden west made why did Wachovia not sue the Sandlers for billions. In 2005 the WSJ had a good story about their exposure to risky loans. Yet the next year Wachovia bought them.
I wonder now if fraudulent activities were involved in this purchase. The reported earnings of Golden West before the takeover were false I believe.
I hope the FBI and or SEC get get to the bottom of this. But even if they do most of us will not recover for a long time.
We are gonna have to put the entire banking system through a bankruptcy reorganization or this collapse will accelerate into an unbelievable crisis.
All of the banking regulations were removed during the 1980's and 1990's. Without any regulations these bankers were allowed to make all kinds of gigantic mistakes.
There is no housing crisis. This housing issue isreally just a reflection of a full blown banking collapse.
Bring back the policies of Franklin Roosevelt.
I wonder if a collapse of Wachovia may happen soon. How can they pay for golden West without bankruptcy. Cutting dividends will only save a few billion a year. But they may be under water by tens of billions.
People may forget this but the merger of First Union and Wachovia came on the heels of the September 1998 Russian GKO crisis that resulted in the liquidation of hedge fund "Long Term Capital Management". The US banks were reeling under the pressure of the collapse. NCNB merged with Bank of America (who had financed DE Shaw in the Russian GKO debacle), while First Union grabbed ahold of Wachovia.
From there Fed Chairman Alan Greesperm began to open the money spickets fueling the Y2K and internet bubbles. When that collapsed in Y2000/Y2001 he again turned on the money supply and came up with "cash out" home equity loans.
BofA and Wachovia both had to go along with the latest bubble or they would have gone bankrupt in the late 1990's. Now as a result of following this insanity they are both in deeper trouble than if they would have admitted their insolvency in the late 1990's and submitted to bankruptcy wiping off the bad debt.
The latest GAO reports BofA to be holding an estimated $30 trillion of derivative debts in off balance sheet accounts.
This is a crime against the US population. BofA and Wachovia should be placed into government receivership and thus "freeze" the debts and prevent a full blown uncontrolled banking collapse.
The circus around the firing of Ken Thompson is just a diversion to deflect the real issue.
Wachovia is bankrupt 100 times over. That's the real issue. The same can also be proven about Bank of America.$30 trillion in debt is unpayable under any circumstances and they can no longer "roll over" the debt waiting for some sucker to buy up their bad paper.
More good news coming from the frontlines of the collapse of the banking/financial system
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