Does Wachovia really have to sell? No, says analyst
"The outcome of the proposed government bailout is a potential wildcard for WB's stock. If the bailout gets approved...(Wachovia may have) the option to offload some of its (money-losing mortgages) at prices more favorable than today's "fire sale" prices," writes Kevin Fitzsimmons of Sandler O'Neill.
NOTE: Overtaken by events! See later posts.
"The outcome of the proposed government bailout is a potential wildcard for (Wachovia's) stock. If the bailout gets approved...(Wachovia may have) the option to offload some of its (money-losing mortgages)
at prices more favorable than today's "fire sale" prices," writes Kevin Fitzsimmons of Sandler O'Neill & Partners.
Also, Wachovia CEO Robert Steel can still sell assets, raise capital, and cut the dividend if he really wants the bank to stay out of Citigroup's or Wells Fargo's or anyone else's embrace.
Of course, this is a public company, and everyone on the stock market is for sale at the right price. Wachovia's problem is that its price was south of $10 a share, about what it was worth in 1990 (not counting inflation), last we checked.