Things are not so good at the Banks

[jednc]

This was Channel 36's lead in story at 6pm. They say that 11,000 jobs are going and that the knife will take a broad cut in Charlotte. They also indicate that Wachovia is now a potential takeover target and if that happens, 1000s more jobs will go. JP Morgan and Wells Fargo are mentioned.

Seems to me the new vanity skyscraper they are building was not such a good idea.

[Charlotte_native]

I thought we never believed anything on the local evening news...

[tiblerbrit]

Although still poor, the actual loss was more like 2 billion; 6 billion wasn't an actual cash loss. Their liquidity is fine and they will most likely dump a subsidiary like Wachovia Securities to JPMorgan or Wells Fargo.

[JRNYP2C]

^They also had their STL offices, (Wachovia securities) raided by regulators last week. Not sure what that was about.

[SmellyCat]

Although still poor, the actual loss was more like 2 billion; 6 billion wasn't an actual cash loss. Their liquidity is fine and they will most likely dump a subsidiary like Wachovia Securities to JPMorgan or Wells Fargo.

[SmellyCat]

This was Channel 36's lead in story at 6pm. They say that 11,000 jobs are going and that the knife will take a broad cut in Charlotte. They also indicate that Wachovia is now a potential takeover target and if that happens, 1000s more jobs will go. JP Morgan and Wells Fargo are mentioned.

[Raintree21]

How are other media outlets around the country treating BOA and Wachovia? I haven't seen a ton of mentions from CNN. Anybody a frequenter of other sites or stations?

[monsoon]

... It was up 27% on the day and 85% in the past week!

[BUILDIT]

This was Channel 36's lead in story at 6pm. They say that 11,000 jobs are going and that the knife will take a broad cut in Charlotte. They also indicate that Wachovia is now a potential takeover target and if that happens, 1000s more jobs will go. JP Morgan and Wells Fargo are mentioned.

Seems to me the new vanity skyscraper they are building was not such a good idea.

[SmellyCat]

But it fell that same amount over the previous week!

They hit a 17 year low this past week. With that kind of drop, even a few pennies is going to look significant. A year ago the stock was $53, today it closes at a little over $16. This is a considerable amount of wealth that has gone up in smoke. Imagine the value of every bank they have acquired in the past 17 years all of a sudden becoming irrelevant. No doubt a lot of this pain being carried right here in CLT by employees, some now to be let go, who most likely bought this stock.

[Commoner]

How are other media outlets around the country treating BOA and Wachovia? I haven't seen a ton of mentions from CNN. Anybody a frequenter of other sites or stations?

[swh1972]

The recent stock move by BAC has given them (at least for the time being) the distinction of being the largest U.S. Bank in terms of Market Cap - passing up JP Morgan yesterday.

As of the close, BAC was around $144B, and JPM was at $140B.

For comparison, Wachovia is $33B, BB&T is $15.5B, Fifth Third is $8B.

[monsoon]

But that just means there are opportunities. You can "back the truck up" and load up on Wachovia shares when they're only $10. When they're $53, not so much. I feel bad for people who held from its all-time high, but the best thing they can do (if they can afford it) is double down baby!

[atlrvr]

Hopefully many of these jobs will be in Oakland at Golden West's former HQ....I don't see the need in keeping around their "expertise" in generating high-risk loans.

[monsoon]

Here is another article from the Observer where they claim it was short sighted to get rid of Thompson.

[Commoner]

Indeed. There are always opportunities as I assume people thought when it had reached $40/share. There are similar opportunities with your money at a black jack table in Vegas. The thing about this is that just a few weeks ago, when uncle Ken was still running things, they were painting a much rosier picture of themselves.

I am sure the bank saw an "opportunity" a euphemism for gamble, when they tried to cash in on the non-traditional US mortgage market. It was a bad bet and one that has cost them dearly. As a result this bank has completely exposed itself to whatever the United States economy throws at them and what happens with that is mostly beyond their control.

Funny thing about this, there was a forumer here, whom I believe worked for the bank at that time, that posted in detail how this was gong to go down, and he hit the nail on the head. (this was two years ago)

[sleightofhand]

Indeed. There are always opportunities as I assume people thought when it had reached $40/share. There are similar opportunities with your money at a black jack table in Vegas. The thing about this is that just a few weeks ago, when uncle Ken was still running things, they were painting a much rosier picture of themselves.

I am sure the bank saw an "opportunity" a euphemism for gamble, when they tried to cash in on the non-traditional US mortgage market. It was a bad bet and one that has cost them dearly. As a result this bank has completely exposed itself to whatever the United States economy throws at them and what happens with that is mostly beyond their control.

Funny thing about this, there was a forumer here, whom I believe worked for the bank at that time, that posted in detail how this was gong to go down, and he hit the nail on the head. (this was two years ago)

[atlrvr]

He left me a voicemail several weeks ago....the jist was, Wachovia shares below $10 (this was when they were at $16), Wachovia sold within 2 months, Charlotte "decimated"......I haven't talked to him since they hired Steel as CEO.

Further, everyone should buy gold.

[monsoon]

Normally not a good sign, but who knows in Wachovia's case. The bank's CFO has decided to step down. Read into that what you like. Is it a purge of the old guard to make way for new ideas or is it like a rat running off a sinking ship?

[JerseyBoy]

I've heard this is a possibility, but how do all of you feel about if they brought in Wachovia's old executives (prior to First Union merger) to help set things straight?

[monsoon]

Bank of America's Subsidary, Countrywide, has won the Worst Company in America contest.

"It looks like in the end, we all decided that the destruction of a giant chunk of the American economy by greed and fraud was more reprehensible than an unsatisfactory internet experience.

The Lucky Golden Sh*t award will get shipped to Angelo "Golden Boy" Mozilo, former Countrywide CEO, who steered the ship of financial doom from its inception to the height of its unfettered raping of the American Dream, just as soon as we find a good mailing address for him. The receipt for the Lucky Golden Ship will get mailed to Bank of America CEO Kenneth D. Lewis, along with a certificate of completion."

My guess is the award won't be displayed in Bank of America's lobby in downtown Charlotte. Full story here. Is there a business with ethics so low that even BofA won't invest in it?

[jednc]

Normally not a good sign, but who knows in Wachovia's case. The bank's CFO has decided to step down. Read into that what you like. Is it a purge of the old guard to make way for new ideas or is it like a rat running off a sinking ship?

[Commoner]

Bank of America's Subsidary, Countrywide, has won the Worst Company in America contest.

"It looks like in the end, we all decided that the destruction of a giant chunk of the American economy by greed and fraud was more reprehensible than an unsatisfactory internet experience.

The Lucky Golden Sh*t award will get shipped to Angelo "Golden Boy" Mozilo, former Countrywide CEO, who steered the ship of financial doom from its inception to the height of its unfettered raping of the American Dream, just as soon as we find a good mailing address for him. The receipt for the Lucky Golden Ship will get mailed to Bank of America CEO Kenneth D. Lewis, along with a certificate of completion."

My guess is the award won't be displayed in Bank of America's lobby in downtown Charlotte. Full story here. Is there a business with ethics so low that even BofA won't invest in it?

[tozmervo]

But "unfettered raping of the American Dream" - really? C'mon...

[mshook]

Bank of America's Subsidary, Countrywide, has won the Worst Company in America contest.

"It looks like in the end, we all decided that the destruction of a giant chunk of the American economy by greed and fraud was more reprehensible than an unsatisfactory internet experience.

The Lucky Golden Sh*t award will get shipped to Angelo "Golden Boy" Mozilo, former Countrywide CEO, who steered the ship of financial doom from its inception to the height of its unfettered raping of the American Dream, just as soon as we find a good mailing address for him. The receipt for the Lucky Golden Ship will get mailed to Bank of America CEO Kenneth D. Lewis, along with a certificate of completion."

My guess is the award won't be displayed in Bank of America's lobby in downtown Charlotte. Full story here. Is there a business with ethics so low that even BofA won't invest in it?