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Wachovia failed but because of its size and scope the FDIC couldn't do a simple weekend takeover. Instead, they forced it to sell to Wells Fargo for virtually n
by bshipp 4y ago
Wachovia failed but because of its size and scope the FDIC couldn't do a simple weekend takeover. Instead, they forced it to sell to Wells Fargo for virtually nothing before it actually went under. It was a different sort of bank failure given its interconnectedness with investment banking.
Similar to the way Merrill Lynch was forced into a shotgun marriage with Bank of America to avoid a collapse, and a number of similar firms during the collapse of Wall Street.
- skinnymuch 4y agoAh okay right. I just read up on Wachovia and it seems like that’s what the Govt tried doing with Citi. Then WF came in and paid much more. I’m not saying this to say you’re wrong, just what I read as someone who doesn’t know this stuff. And overall your point is correct the Govt was trying to do that and then it seems they then didn’t let Citi fight for Wachovia properly because they were happy WF was buying them. Yeah the Merrill Lynch one I am more familiar with and how much it has cost BoA