Wachovia Fails… Did You Notice?
By: Sean Purcell,
LifeThatPops.com,
Post Archive,
RSS FeedPosted: Monday, September 29th, 2008, 3:18 pm MST
Category: Lending
Lost in the tsunami of bail-out failure, Wachovia gave up the ghost. Wachovia now joins Countrywide and WaMu as the big three option arm originators now become three of the biggest financial failures of all time. If this looks familiar to any posts you may have read here at BHB, including those on The Mortgage Dance and Wachovia Completes the Gang of Three, consider it pure coincidence.
Does it sound like I am gloating a little over the downfall? I am. Option arms were the tool and bribery was the modus operandi. Loan originators fed their greed while homeowners lied to get homes they could not afford and Wall Street leveraged the whole thing to apocalyptic proportions.
I wonder if there is enough blame to go around.
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12 Comments so far
I noticed, but only because I was paying attention to it. I just wonder with the failure of the bailout will the dominos continue to fall? Is there a next Wachovia just days away from failing? At this point should be even care?
Ahhh, option arms that loan program that had a foundation of lying from the people who sold it to the people who bought it!
Yes, Brian it was only a loan program that could be used by sophisticated folks for cash flow purposes. Unfortunately everyone turned it on its head and made it into a lie!
My option arm will be fully indexed under 5% next month – for a jumbo loan which today would be 9%.
Say what you want, but…
Three months ago this would have been HUGE news and with everything that has gone on,it is almost unnoticed.
Aloha,
Keahi
“I just wonder with the failure of the bailout will the dominos continue to fall? Is there a next Wachovia just days away from failing?”
Um … rhymes with “Klowney”.
RIP, WB.
What say you, wise BHB crowd? Which major bank will be the next to fail?
Downey
The only question is who is left after Downey and will anyone care?
Who cares?
“The Gang of Three” I like that. What about the Unholy Trinity… or a new Axis of Evil =0)
Loan Mods, or FHA Short Refinances anyone?
Chris
I agree there is plenty of blame to go around. We can put this all on the shoulders of mortgage lenders. Unfortunately things backfired on them and even homeowners that were getting lending when they could hardly afford it. The real estate market shifted and now we are stuck with a $700 billion bail out that still has to be passed. Send some of that money my way.. I will give to the economy!
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