Kudos to Wells Fargo for buying Wachovia with no government help. Citigroup, which was hoping to stick it to the taxpayers, ends up losing the deal and looking stupid. Of course, if you work with the government things will go slow and probably be bad. Wells Fargo knows this which is why they decided to purchase Wachovia with their own money.
An interesting note:
"Although it is still too early to tell, this could presage a significant shift in market sentiment toward the value of companies such as Wachovia, and may suggest that there has been an overreaction in the downdraft that we saw in the past few weeks. It is a huge shot in the arm for market confidence. It is also a signal that market forces are capable of resolving some aspects of the crisis without undue congressional, and hence, taxpayer, intervention."
Read the rest of the story at:
http://news.yahoo.com/s/ap/20081003/ap_on_bi_ge/wells_fargo_wachovia;_yl...
It makes me regret paying off my Wells Fargo loan a little bit ago. Kudos again and Citibank, you snooze you loose.
