Battered Wachovia Shops for Buyers

Citigroup, Wells Fargo among suitors in wake of WaMu collapse
By Matt Cantor,  Newser User
Posted Sep 27, 2008 11:31 AM CDT
In this July 10, 2008 file photo, Wachovia CEO Robert Steel speaks during a news conference in Charlotte, N.C.   (AP Photo/Chuck Burton)
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(Newser) – Wachovia is in a new round of talks with potential buyers, reports the Wall Street Journal, courting Citigroup, Wells Fargo, and Spain’s Banco Santander to help guard it from the financial market crisis. While the bank says it’s not in immediate danger, shares at Wachovia, which holds a $120 billion mortgage portfolio, dropped 27% yesterday on the news of Washington Mutual’s failure.

Investors worry that more banks nationwide may need to find buyers or raise more capital. The trouble doesn’t just center on mortgages; other borrowers, such as credit card-holders, are also defaulting on their debt. Still, the “vast majority” of American banks are flush with capital that can help protect them.