Oh, well. New Wachovia CEO Bob Steel’s smart PR move–spending $16 million of his own money to buy Wachovia stock at about $16 a share in late July–hasn’t worked out so well.
In fact, on a speed-to-total-wipeout basis, Bob’s bet was even worse than TPG’s vaporization of $1.4 billion in WaMu (that took six months).
Then again, Bob estimated that Wachovia would lose only $10 billion or so on its toxic liar-loan portfolio, and Citi just paid $12 billion of preferred stock to the FDIC to guarantee losses beyond $42 billion. If you’re that wrong, you deserve what you get.
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