“When Wachovia opened Monday it would not have had a source of liquidity,” a source familiar with the situation said. “It really could not have opened under those circumstances. That's why (the FDIC) put together the assistance package.”
Wachovia wasn't insolvent. Regulators said that it's failure was "not the result of a capital problem." Then why did they let the bank fail?
The FDIC said it failed due to a "liquidity problem."They let it fail because depositors were withdrawing their money in droves and the Fed stood by and did NOTHING!
All shareholders of Wachovia should be outraged at this!!
The Fed was created to prevent exactly what happened to Wachovia, yet they did nothing. Worse, they forced the bank into the hands of a competitor for no reason. This is outrageous.
Read story here.