Bailout, Bank Failures, Jingle Mail, Meltdown, Secondary Market

Wachovia seeking buyer


From Reuters:

Wachovia Corp has begun early merger talks with several suitors, according to published reports, all of which spurned Washington Mutual Inc prior to that lender’s seizure by the U.S. government.

Wachovia, the sixth-largest U.S. bank by assets, began preliminary talks with Citigroup Inc, the New York Times said on Friday, citing people briefed on the matter.

Meanwhile, the Wall Street Journal said Wachovia has entered preliminary merger talks with Citigroup, Banco Santander SA and Wells Fargo & Co, citing a person familiar with the situation. Bank executives are expected to be in New York this weekend for talks, it said.

Wachovia’s stock has taken a severe beating since the collapse of Washington Mutual, and many experts believe that it may be the next bank to fail if the federal bailout is not passed soon. The Charlotte-based lender has seen tremendous losses following its acquisition of California-based mortgage lender Golden West - losses which are only expected to continue as the housing slump worsens and the lender’s vast portfolio of Option-ARM loans reset in greater numbers.


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