Well, now that the “fix is in” both literally and figuratively we can take a breath and watch next steps. I find it extraordinary that the day the US House decides to consolidate enormous economic power in one man the market delivers a telling point about price discovery. Wells Fargo’s bid for Wachovia should have upset a few assumptions regarding the Paulson Plan. Citibank’s offer of $2 Billion backed by a Federal subsidy of $42 Billion is trumped by Wells $15 Billion stock offer.
Now, with the Plan signed by the President – who wants to bet the Citi deal goes through the market be damned. Wells will lose this battle. The nerve to step in and disrupt the narrative – They must be crushed.
Now, I will really go out on a limb… Allow me to propose that Goldman Sachs, fortified with new leverage given impending TARP purchases of its “undervalued” assets and backed by Warren Buffet (an existing large shareholder at Wells Fargo – not sure if his GS prioritized preferred is voting) pursues a friendly/hostile takeover of Wells Fargo thus expediting Goldman’s conversion to bank holding company and preserving Goldman Sachs as the preeminent financial institution in the world. And to think ten days ago the firm was on the brink of extinction.
Ah, POWER is the ultimate achievement and now one man controls an awful lot of it – more than any individual in our Nation’s history.
