Skip to main content

Shitichovia: Financial Newspeak (Part II)

  • Author:
  • Updated:

The FDIC insists that Wachovia didn't fail. No really. They swear. So the fact that it is the FDIC that is making the announcement that Citi is buying the banking operations of Wachovia is really just coincidence. Seriously. See, we call it "open bank assistance." As you can see that takes the emphasis off of negative and dangerous words like "failure" and refocusing attention on "open." They were considering a "running bank rescue," but that was before Sheila Bair pointed out the fact that a "rescue" implies distress and "running" sounds a lot like the bank executives are fleeing the jurisdiction.
Oh, Citi is assuming Wachovia's senior and subordinated debt, but that's just because Citi is an organization filled with generous souls who were moved into doing something to "give back to the community" after watching a really touching dog food commercial last night. You know, the one that asks "Shouldn't you give the best to him too?"
FDIC: Citi to Buy Wachovia's Banking Operations