Lehman’s gone, WaMu’s toast, who’s next?

| 26 September 2008 08:51

Judging from today’s open on Wall Street, it looks like that’s the question people are asking. Wachovia and NCC are the two companies under the heaviest selling pressure, both down about 20% already at 9:45.

Remember that National City is under OCC scrutiny. That is the sort of problem that led to massive deposit withdrawals at WaMu. So, it is obvious that they are seen as the next weakest link:

The confidential agreement with the Office of the Comptroller of the Currency was entered into over the past month or so. It illustrates the growing regulatory pressure some financial institutions are under as they struggle to deal with fallout from the credit-market turmoil.
-WSJ, 6 Jun 2008

Congress needs to act now. This thing is spiraling out of control.

avatar About Edward Harrison

Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty years of business experience. He is also a regular economic and financial commentator on BBC World News, CNBC Television, Business News Network, CBC, Fox Television and RT Television. He speaks six languages, a skill he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.

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