Shares of Wachovia were halted this morning. When trading resumed, shares fell more than 80% to below $2 a share, down from about $10 on Friday. Wachovia (the bank) is being bought by Citigroup (today's news). Citi will assume about $53 billion in the Wachovia's debt (again the bank) and take hold of the same loan portfolio that ultimately sank Wachovia [bank] in the end. (CNN).
So its laughable to see this ad from Wachovia Securities on "weathering market volatility" on the front page of wsj.com (screen shot below) today right across from the article Citi U.S. Rescue Wachovia.
Wachovia Securities will remain the second largest brokerage and intends to operate independently after Citigroup Inc. acquired the banking operation, reports Dow Jones in an article titled Wachovia Securities Business May Look For Partner.
The proposed government bailout is designed to restore confidence in the markets, so says Bush. Even if the bailout passes, at this point who do you trust?
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