10-03-2008, 08:03 PM | #1 |
Demiurge
Join Date: Aug 2005
Posts: 36,367
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the Wachovia debacle
FDIC steps in with Wachovia. Arranges for "purchase" by Citi on excellent terms, with FDIC as a backstop.
Then Wells Fargo comes through with an offer an order of magnitude better for Wachovia stock holders, Wachovia accepts. Now Citi objects and says the Wells Fargo deal is a breach of contract. AND WE ARE TO BELIEVE THAT THIS FIRE SALE BY THE GOVT. WAS NECESSARY, AS THERE WAS NO PRIVATE ENTITY WILLING TO STEP IN? It's interesting how in two weeks, capitalism has been abandoned. |
10-03-2008, 08:59 PM | #2 |
Master
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My parents had a home equity line of credit through Wachovia that was frozen last week.
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10-21-2008, 04:55 PM | #3 | |
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10-21-2008, 05:00 PM | #4 |
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Join Date: Jun 2008
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Very common practice right now to combat mounting losses. Under TILA (Truth in Lending Act) a bank is legally able to take such actions if the equity pad on the loan has been reduced by a substantial margin - unfortunately that is regardless of the credit worthiness of the customer and I too have been a victim recently despite a credit score>800. Resticting or reducing Home Equity LOC's is a much trickier ordeal (from a legal standpoint) than taking adverse action on another lending product such as credit card, personal loan, etc. Home Equity LOC's have virtually become an "unsecured" lending product in the last year or so with declining home values and banks are doing as much as they can to hedge losses.
Last edited by NorCalCoug; 10-21-2008 at 08:55 PM. |
10-31-2008, 03:53 PM | #5 | |
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