Monday, April 14, 2008
$7 Billion for Wachovia
More capital infusion into the banking system. This time for Wachovia, from selling new issues of common and preferred stock. Today's $7 billion follows another $8 billion from January. This may relate to their questionable $24 billion purchase of Golden West in 2006, an Oakland-based mortgage lender. This sort of news underscores solvency problems, which is bad for banks and bad for lending, but I anticipate is good for cash.