Wachovia Slumps After WaMu's Seizure, Bailout Impasse (Update4)

Wachovia Slumps After WaMu's Seizure, Bailout Impasse (Update4)

www.bloomberg.com

Wachovia Corp. and National City Corp. slumped after negotiations on the government's financial bailout stalled and Washington Mutual Inc. was seized by regulators and sold to JPMorgan Chase & Co.

Wachovia dropped $3.84, or 28 percent, to $9.86 at 1:20 p.m. in New York Stock Exchange composite trading, and Cleveland-based National City fell 40 percent, leading banks lower. National City and Charlotte, North Carolina-based Wachovia have plunged more than 80 percent in the past 12 months.

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Looks like the next two banks to Fail will be these. These banks took on to much risk and now its biting them in the Butt. JPmorgan fresh out of capitol from buying parts of WAMU won't have the cash to buy these 2. I doubt BOA will seriously consider taking on any more risk of toxic assest.

Looks Like the FDIC will have to force a deal with someone or be stuck with these 2 banks and the hundreds of other banks that are waiting in line to fail.

www.bloomberg.com
(visit the link for the full news article)