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Old 09-29-2008, 11:44 AM   #1
Maximized2000
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Citigroup buys Wachovia...

.....another one went under? You be the judge!

No, according to FDIC.
"The FDIC asserted Monday that Wachovia did not fail"

"Wachovia's problems stem largely from its acquisition of mortgage lender Golden West Financial Corp. in 2006 for roughly $25 billion at the height of the nation's housing boom. With that purchase, Wachovia inherited a deteriorating $122 billion portfolio of Pick-A-Payment loans, Golden West's specialty, which let borrowers skip some payments.

This summer, Wachovia reported a $9.11 billion loss for the second quarter, announced plans to cut 11,350 jobs -- mostly in its mortgage business -- and slashed its dividend. Wachovia also boosted its provision for loan losses to $5.57 billion during the second quarter, up from $179 million in the year-ago period."

http://www.nbc10.com/money/17579826/detail.html
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