The House of Representatives failed to pass a rescue plan for the financial system. Although I share the same concerns and similar personal beliefs of those who voted no (and their constituents), we are living in extraordinary times. I too would like to see financial institutions, irresponsible mortgage brokers and borrowers and ratings agencies suffer, but the consequences of not passing a deal are too horrible to consider. I shudder to think of how the markets will behave until the House reconvenes on Thursday.
Citi purchased the banking operations, private bank and investment bank of Wachovia. This deal could turn out to be a real coup for Citi (thanks to FDIC backstopping), but Citi is being vague on certain aspects of the deal (branch branding, preferreds, etc.) As usual, C management are hiding under their desks, refusing to comment or state opinions (worthless creatures). Even Citi investor relations has been silent. Same as it ever was at the big C.
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