Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Ticker Shock: Circuit City, Apple, Wachovia Get Powered Down


Monday's top stories and stocks with potential to move.


Good news and bad news this morning.

First, the good news: The House is expected to vote on the "bailout plan" today, which is what we've all been waiting for. The bad news; It looks like that $700 billion will come, or could come, in stages. From what I'm seeing, it could be $250 billion upfront, $100 billion requested by the President, and the final $350 billion upon Congressional approval.

Congress has been dining on surf and turf for years, and now they decide to get cheap and whip out the coupon book - which is what they're essentially doing by working this thing in stages.

Of course, we are talking about Washington, which is always a crap shoot.

Investors didn't seem to like what they were hearing. Asia and Europe were blinking red prior to the US open. The Dow futures were off almost 200 at one point, but are now down about 150. It still looks kind of ugly.

Wachovia Bank (WB)
There'd been talk over the weekend that several potential suitors might have been kicking the tires, including Wells Fargo (WFC), Citigroup (C) and Madrid-based Banco Santander (STD). In spite of this, the rumor was that any price paid or any takeout price wouldn't be anywhere near, much less north, of the $10 at which Wachovia's shares closed at on Friday.

At about 5:30 a.m., when I flicked on CNBC, the outcome was still an unknown. Then news came out that Citi was going to buy the firm's deposits, along with billions in loans. Details are still a bit sketchy, but it appears as though the FDIC is going to be taking on some of the company's liabilities.

A sad day for Wachovia shareholders - it looks like the bank is going to open below a buck.
The only plus I see here is for Citi and its shareholders. But exactly what it will mean in terms of dollars and cents has yet to be laid out, and it's hard to tell at this point.

Citi shares appear as though they'll open slightly lower. By the way - Citi also said its going to cut its dividend in half.
< Previous
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos