Lost in the tsunami of bail-out failure, Wachovia gave up the ghost. Wachovia now joins Countrywide and WaMu as the big three option arm originators now become three of the biggest financial failures of all time. If this looks familiar to any posts you may have read here at BHB, including those on The Mortgage Dance and Wachovia Completes the Gang of Three, consider it pure coincidence.
Does it sound like I am gloating a little over the downfall? I am. Option arms were the tool and bribery was the modus operandi. Loan originators fed their greed while homeowners lied to get homes they could not afford and Wall Street leveraged the whole thing to apocalyptic proportions.
I wonder if there is enough blame to go around.
(This post was first published here.)
Filed under: POLITICAL & ECONOMIC FOLLY , bailout, Wachovia
