Is Wachovia Next?
 

I called my Bank of America contact just a couple days ago, inquiring about stability, FDIC coverage, etc. She said she had been getting those calls multiple times each day for the past 2 weeks. I think Wachovia will definitely merge with someone; Citi or Morgan Stanley seem to be the two favorites. However, I wouldn't put it past BofA to try to take them, either.

I have most of my accounts with Wachovia and have been really happy with them. Hopefully everything will be fine.

On a side note, does anyone else think BOA is getting too big too fast? They have swallowed up a few companies in recent times. How hav ethey managed to be so successful? Is it due to all of the credit card interest they are earning?

They can't buy Wachovia. It would put give them more than 10% of deposits in most of the east coast, which they are not allowed to do by law. That is why someone like Wells Fargo makes more sense. Wachovia is not big in the west, and Well, is not very big in the east. It'd be a good match. Matter of fact, rumors of merger talks between these two has been going on for a few months, now... even before the financial crisis arose.

Thanks for the clarification. Just after I posted it, I wondered if there were some sort of anti-trust regs that would prevent it.

Wachovia is still a financially sound company. They have taken steps to raise capital and has enough assets to fund its current obligations. As a Wachovia customer myself, I'm not worried.

FSETH, Can't post answers to your questions here. ;)

Suffice to say, BofA know when to buy banks, at what price, and how to incorporate them into the larger corporation in an efficient and profitable manner.

I miss my WAMU :( I'm not a fan of the Chase Empire

I dislike reports like this because they can cause a run on the bank which just makes things worse

Citi agrees to by Wachovia.

http://www.bloomberg.com/apps/news?p...bZ8&refer=news

so, as you were saying ;)