Archive for the ‘Wachovia’ tag
In the middle the bailout
The quagmire on Wall Street has spread so quickly, it is difficult to keep track, even of all of the failures that have only recently occurred. Here is a recap of some of the more significant ones: Fannie Mae and Freddie Mac - seized by the government (at a potential cost in excess of $200 billion), AIG - $85 billion (for an 80% equity stake), Lehman Brothers - essentially bankrupt, Bear Stearns - essentially bankrupt (folded into JPMorgan Chase after government guarantees were arranged), Washington Mutual - Chapter 11, Merrill Lynch (folded into Bank of America).
What’s happening now: Wachovia is being swallowed by Citigroup, and Fortis is being “rescued” by the Benelux countries. And the US government is putting together a $700 billion TRAP, oops TARP (draft Troubled Asset Relief Program).
Procerity’s Prognosis: While the bailouts may stem the bleeding on Wall Street, it will not prevent the coming depression on Main Street.