The FDIC has arranged another shotgun marriage, this one between Wachovia and Citigroup, which will assume $42 billion in bad paper held by Wachovia. What were these companies thinking?
It will all be underwritten by the FDIC. And it will mean, according to the N.Y. Times that this further concentrates Americans’ bank deposits. Now Bank of America, JPMorgan Chase and Citigroup would control more than 30 percent of the industry’s deposits. Of course that doesn't count the U.S. Government, which will probably own every financial institution in America before we are through.
And the good news is the U.S. Treasury is completely debt free.