Monday - More Bank Failures, EESA Still Not Done
 

Two more big bank failures, and some near-misses.

Wachovia's banking operations sold to Citigroup with FDIC support (strictly speaking not a "failure", but must feel like it to WB's shareholders, stock now $2).

Bradford & Bingley (large UK mortgage lender) shut down by govt.

Fortis (large Benelux bank and insurer) receives $17BN in govt rescue. Also rescued - Hypo Real Estate Holding AG (#2 German commercial RE lender) rescued by other German banks, Glitnir Bank (#3 Iceland bank) nationalized.

Fed and other central banks increasing liquidity support to banking sector. Citigroup ratings on negative watch. LIBOR/Treasury spread moves higher.

Meanwhile, Paulson plan (now called Emergency Economic Stabilization Act of 2008) still not voted on, unclear if gets passed this week.

I am a Wachovia share holder but it's a preferred stock. It's still trading but down to $1.50/share. What I wanna know is what will happen to it now? It pays a nice coupon (about 7%) based on the par of $25. If one of you more experienced money guys can chime in and tell me what happens in situations like this.... Thanks?

Don't know - you have to figure out if the preferred is now the obligation of C or remains w/ what is left of WB, then what you think about viability of the remaining WB.

Thanks for the reply John. That's what I was basically asking...is it the obligation of Citi. Guess that will be announced sometime? Not gonna sell or buy so just wait and see.

Whatever your preferred was worth, with this morning's House vote, it is now worth much less.

Everything seems to be tanking just now... ugh...