I would suspect the 10% nationwide deposit cap would come into play soon for JP Morgan Chase. Maybe not though.
not so fast! http://news.yahoo.com/s/nm/20080928/ts_nm/us_wachovia Wachovia bank in talks to be bought: sources By Paritosh Bansal and Megan Davies 1 hour, 24 minutes ago NEW YORK (Reuters) - Wachovia Corp is in talks with rivals to be taken over, sources familiar with the situation said on Sunday, after the U.S. bank's shares fell 27 percent on Friday due to ongoing concerns about its portfolio of illiquid mortgage assets. Citigroup Inc is among the parties in talks with Wachovia, the two sources said, and one source said Wells Fargo & Co was also in discussions. The New York Times said the two companies were locked in a bidding war for a possible takeover of Wachovia, citing people involved in the talks. The U.S. government, led by the Federal Reserve and the Treasury Department, is also involved in the talks, the newspaper said. The government is resisting guaranteeing some of Wachovia's assets, as it did for Bear Stearns when it engineered that company's sale to JPMorgan Chase & Co, and is also opposed to taking over Wachovia unless its financial position deteriorates more rapidly. Talks could go past Sunday night, the newspaper said. Citigroup and Wells Fargo are unlikely to bid more than a few dollars a share for Wachovia, whose shares closed Friday at $10, the newspaper said. It is unclear whether Wachovia would be sold as a whole or be broken up, or how much Wachovia bondholders might lose in any transaction, it said. A Wachovia spokeswoman declined to comment. Citigroup and Wells Fargo could not be immediately reached for comment. Investor concern about Wachovia mounted Friday after JPMorgan said it would take a $31 billion write-down on loans it acquired when it took over Washington Mutual Inc's banking unit on Thursday. The write-down raised worry that Wachovia might have to take much larger write-downs on a $122 billion portfolio of option adjustable-rate mortgages it largely inherited when it bought California lender Golden West Financial Corp in 2006. (Additional reporting by Jonathan Stempel; Writing by Michael Erman)
Lehman had no business declaring bankruptcy when there were bidders at the table up until the last week.
Oh look at this. Fortis gets a lifeline. European bank giant Fortis partially nationalized http://ap.google.com/article/ALeqM5gq42vLUmcA9LTFzCEF-EN1vnhV8wD93G2A0G0
glynch the govt purchasing illiquid assets would not save wachovia. they hold 120 billion worth of pay option arms...more than twice what wamu had.
The pay option ARM is arguably the dumbest idea in the history of consumer lending. It is a recipe for having scores of notes that are undersecured.
