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Sixers, Flyers soon to play at FDIC Center
Wachovia, one of the more prominent banks that isn't based here in Philly but happily takes our money, just announced that it lost nearly $9 billion and is laying off 6,350 workers.
Do you think maybe this has something to do with it?
Wachovia has been suffering from its 2006 acquisition of Golden West Financial Corp. The bank paid roughly $25 billion for the California mortgage lender known for exotic loans.
The so-called "Pick-a-Payment" loans, which Wachovia inherited from Golden West, have proved a headache for the bank and a lightning rod for shareholders, defaulting at higher rates than other mortgages.
Wachovia recently discontinued offering the "Pick-A-Payment" loan option, which allows customers to pay a less-than-full interest payment on all new home loans. The bank also had hired The Goldman Sachs Group Inc. to conduct an analysis of its loan portfolio and advise it on strategic alternatives.
Why does the world seem to go completely off its rocker every 100 years or so. It happened in 1914.
It's happening now.