Picture this. You’re world-renown bank analyst Dick Bové, famous for, among other things, issuing a report in summer 2008 about which banks were “next” to fail, not rolling over and taking it when Citigroup tried to screw you good, and standing by Ken Lewis when literally no one else (including his board) would. When you walk into rooms, people notice. More often than not, they ask you to pose for pictures, kiss their babies, sign their tits. Some have fainted in your presence. You’re the fifth Beatle, Justin Bieber, and George Clooney, all wrapped into one devastating little package. It should go without saying that an appearance by you at your local branch bank, to cash six-figure checks, as you often do, would be call for a red carpet and the crème de la crème of customer service, right? Apparently wrong. Read more »
Dick Bové: Wells Fargo Is Managed Great If You Don’t Take Into Account The Horrible Customer Service I’ve Received On Several Occasions, For Which Heads Should RollBy Bess Levin
Wachovia Employee Admits To Convincing Clients To Put $14.1 Million In Wealth Management Fund Bank Didn’t Actually OfferBy Bess Levin
Like most people who do these sorts of things, Linda Speaks Tribby had a good excuse, which is that she needed the money to buy a helicopter and a motor home, two purchases that seem slightly at odds but the heart wants what it wants. Read more »
With the money he embezzled from Wachovia ($11.2 million give or take a few clams), Scott Welch bought himself many a sports car. This was a plan, to throw people off the trail. He didn’t buy a new set of wheels “constantly,” as neighbors recall, in an attempt to hide the fact that he was stealing money from the bank, but to distract from what he was really putting the funds toward. A love that dare not speak its name. A love of plants, and impeccably maintained yards. Read more »
If you thought the SEC’s charges against Goldman Sachs poured fuel on an already-raging populace fire, Wall Street’s involvement in a massive bid rigging scandal in the $2.8 trillion municipal bond market will fan the flames even more.
Earlier this month, we heard about an SEC investigation of conflicts of interest at big banks that bought credit default swaps on muni bonds they sold to state and local governments. But Bloomberg is out with a big investigative piece today about a massive bid-rigging scandal in the muni market that, if true, bilked 160 state agencies, local governments and non-profits out of hundreds of millions of dollars. Read more »
I’m still trying to get my head around this: What does it mean when the stock you hold that is sitting at $6.00 per share posts a $11.00 per share loss? That’s is the Wachovia shareholder experience.
Chief Executive Robert K. Steel said, “Although this has been a challenging quarter, Wachovia’s underlying businesses remain solid and our franchise exceptionally attractive.”
As we pointed out yesterday, we might be outraged, but nothing surprises us anymore. Seriously. Nothing. Really. We saw a cab drive by the other day dragging a burning Christmas tree behind it. Nothing. No bells. No whistles.
Ironically, their net loss of $23.7 billion looks suspiciously close to the $25.5 billion purchase price for Golden West Financial. Funny how that works.
Wachovia Swings to a $23.7 Billion Loss [Wall Street Journal]
National City Drops 52% as Market Wonders Who’s Next [CNBC]
You sort of knew that the Bangkok Bank Flu was going to hit the regionals and super regionals once they saw the haughty WaMu brought low. I suppose it means something that Dimon et. al. have made provisions for expensive refurbishing given that many WaMu branches don’t have vaults in them. That has to be some kind of indicator worth paying attention to. (Recommendation: A PIPE transaction with Fischet).
National City has broken the $3 floor, after a 40%ish drop, its paper probably on its way to the non-existent WaMu vault. Fifth/Third, which had been pretending not to notice for some time, is starting to notice. Wachovia took at 30% haircut. Wells Fargo, however, having been sprinkled with Magic Buffett DustTM is up 5%. That stuff bends space and time to such an extent that Steve Jobs might defacto have given up his monopoly on the Reality Distortion Field.TM
Update: Relax, Asian bankers. We weren’t suggesting another Thai currency crisis or anything. Just a highly virulent fiscal bug that is going around in the new center of American Finance: North Carolina.
Wachovia, National City tumble on bailout, WaMu news [Reuters]
New Wachovia CEO Robert Steel vowed to turn things around at the bank and he was not kidding. He started with morale boosting pep rallies and marshmallow tower building competitions, and now he’s moved on to a not even necessary capital raise that, while probably dilutive to current shareholders, is sure to wow the crowds with Bobby’s out of the box thinking, no doubt honed during his time at Goldman Sachs.
We did it! Bleeding out the ass Wachovia is now up nearly twenty five percent clearly due in large part to our pep-rally this morning. Fantastic jobs all around.
At this time, in light of Wachovia’s not so good second quarter, I want everyone to get up on his/her chair and shout “I love Wachovia,” while dancing, which is not only a team building exercise for WB first years but 95 percent of CEO Robert Steel’s master plan for pumping the stock. Unless of course you are planning on making some $$$ on what Bove thinks is an around the corner fall–lookin’ at you, Paulson–in which case, please proceed with your refrain of choice, “Let’s burn this motherfucker down.”