Wachovia (WB)

[Electrophys]

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Hoping to get a little insight.

I've had a bank account with Wachovia for many years. Recently got their 1 year CD @ 4.25%. I'm not very knowledgeable about the financial world...but I've been reading that Wachovia has taken a pretty big hit with regards to "bad loans" exposure, especially with its acquisition of Golden West or something. Also, there are possible talks about a merger with Morgan Stanley (MS) or another investment bank. Needless to say, Wachovia seems to be in a pretty tenuous situation just like the rest of the financial sector.

Bottom line: should I look for an alternative bank? Will I able to liquidate the money I have in my CD account at its 1 year lifetime? Or does Wachovia have a brighter than suggested future?

Thanks.

 

[mgdsh]

You want a bank that will not die? JP Morgan is the strongest bank right now by far. Bank of america is second and pretty strong. Citigroup is third, but is weak. Wachovia is fourth and weaker. You get the picture?

Don't worry, none of the top 3 will die or else America is dead.

Eh judging by how WB's stock has been trading it's really not that strong 🙂

Tier 1: JPM, WFC, USB, BAC,
Tier 2: C (just based on its size alone)

just about the only banks I'd have my $$ with.

 

[Sol Rosenberg]

Hoping to get a little insight.

I've had a bank account with Wachovia for many years. Recently got their 1 year CD @ 4.25%. I'm not very knowledgeable about the financial world...but I've been reading that Wachovia has taken a pretty big hit with regards to "bad loans" exposure, especially with its acquisition of Golden West or something. Also, there are possible talks about a merger with Morgan Stanley (MS) or another investment bank. Needless to say, Wachovia seems to be in a pretty tenuous situation just like the rest of the financial sector.

Bottom line: should I look for an alternative bank? Will I able to liquidate the money I have in my CD account at its 1 year lifetime? Or does Wachovia have a brighter than suggested future?

Thanks.

If your account value is under $100k, why worry? You will be able to get your money, even if Wachovia goes under.

 

[lord_jeebus]

Does anyone know how long it takes for the FDIC to set you up with access to your money in these cases?

I would be willing to change banks if it meant not worrying about getting new checks in time to pay bills and such. If I was with Wachovia, which I'm not.

 

[mgdsh]

Wrong, the FDIC only has a certain amount of funds. That insurance "up to $100k" is only good while FDIC has the funds to back it up. People banking with IndyMac were lucky in the sense that IndyMac was one of the firsts to go, and the FDIC still had available funding (of which a good portion was used up with IMB).

 

[lord_jeebus]

I can't see more than one or two congressmen/senators voting against an increase in FDIC funding, if it comes to that.

 

[mgdsh]

I can't see more than one or two congressmen/senators voting against an increase in FDIC funding, if it comes to that.

I wouldn't rely on the stupidity of politicians to bail you out. It's their stupidity that allowed us to get into this mess in the first place.

 

[UserNameNeeded]

It just astounds me that their going to spend $700+ billion (probably more like a couple of trillion for all of the bailouts) on buying up bad loans from banks. They need to put that money to providing free health care, free higher education and another stimulus check. Economic problems solved. Unscrupulous, greedy and irresponsible banks fail, but the economy is stronger over the long-term by supporting the consumer.

 

[radslooking]

It just astounds me that their going to spend $700+ billion (probably more like a couple of trillion for all of the bailouts) on buying up bad loans from banks. They need to put that money to providing free health care, free higher education and another stimulus check. Economic problems solved. Unscrupulous, greedy and irresponsible banks fail, but the economy is stronger over the long-term by supporting the consumer.

the problem is that if the banks fail the credit system fails. like a shark that needs to move to live, my rudimentary understanding is that if these banks fail universally, then getting money ceases, and life does not go on normally. Nothing can get done. People can't support their businesses without new cash...so they lay off people...those people need assistance...can't pay their mortgages...can't buy anything....chaos.

 

[kami333]

If anyone has a Wachovia account, I'd consider opening a Citi account before they switch you over. Citi has some nice sign up bonuses and while BoA and Chase usually let you get them even if you are a existing customer, Citi is pretty strict about being a new customer.