East Bay Business Times
September 26, 2008
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Wachovia Corp. stock, which has been experiencing huge swings throughout the credit crisis, was down big again Friday as a potential bank bailout deal fizzled and Washington Mutual Inc. failed.
Wachovia shares were trading down 27 percent at $10.01. Like Seattle-based Washington Mutual, whose business will be taken over by JPMorgan Chase & Co, Wachovia has been beset by a portfolio of troubled mortgage loans. Wachovia inherited much of its problem with its $25 billion purchase in 2006 of California-based Golden West Financial.
On the recent days when Wachovia stock has done well, it was buoyed by anticipation of a bailout and the possibility that the Charlotte, N.C.-based bank could be bought by Morgan Stanley. But Morgan, said to be looking for access to Wachovia’s deposit base, has apparently gone in a different direction with its change to a bank holding company structure and an agreement to sell up to 20 percent of the company to Mitsubishi UFJ Financial Group Inc.
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