A day after Washington Mutual fell, Wachoiva began talks with Citigroup and other possible suitors, including Wells Fargo and Banco Santander of Spain, about a possible merger. The Wall Street Journal reports that "Wachovia officials don't believe they need to rush into a deal, and the bank isn't feeling immediate pressure on its financial condition," but the mortgage crisis has put pressure on many banks. Shares have fallen 78% in the Charlotte, NC-based company over the past year, and the NY Times says Wachovia holds $120 billion of risky option adjustable-rate mortgages, which allow borrowers "the option of skipping part of their payments and adding that debt to the principal of the loan."
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