Did 'silent run' on Wachovia push FDIC to act?
Intriguing story in the Charlotte Observer, hometown paper to Wachovia and Bank of America, suggesting Wachovia was in deeper trouble than we all thought. Here's the first sentence below and the entire story.
"On Friday, with its stock plunging 27 percent, Wachovia experienced a 'silent run' on deposits, but the bigger worry for regulators was that other banks wouldn't provide the Charlotte bank with necessary short-term funding when it opened for business Monday, sources familiar with the situation told the Observer."
No wonder Citigroup got a sweet deal last Monday with FDIC guarantees. Now Wells Fargo has stepped up to buy Wachovia and Citigroup is protesting -- and considering a sweetened bid as well. So far, at least one community group is already up in arms over a Wells Fargo-Wachovia deal.
--Robert Trigaux, Times Business Columnist