Wednesday, October 22, 2008

Was There a Money-Back Guarantee??

Wachovia eats.....ahhhh....dirt.

Wachovia on Wednesday posted a $23.9 billion third-quarter loss, a record for any United States lender in the global credit crisis ... The loss totaled $11.18 per share, and stemmed mostly from an $18.7 billion write-down of good will

Much of Wachovia’s troubles stem from a fast-deteriorating $118.7 billion portfolio of “Pick-a-Pay” option adjustable-rate mortgages it largely took on when it bought the California lender Golden West Financial for $24.2 billion in 2006.

Wachovia said it now expects cumulative losses on that 438,000-loan portfolio of $26.1 billion, or 22 percent, up from the 12 percent it had forecast in July.

Suppose Herbie and Marion Sandler will refund 22% of their proceeds from selling Golden (??) West to Wachovia?

They got $2.4Bn from the Suckers of Wach. Surely, $500 million or so wouldn't bother them--nor the LeftoWackies they are funding: Center for American Progress, MoveOn.Org, Human Rights Watch, Media Matters.

After all, they should WANT to "spread the wealth."

HT: CalculatedRisk

1 comment:

Anonymous said...

Sounds like a windfall profit.