Crazy Day and the Death of a Good Company

So I've decided to start this blog on perhaps the darkest day in recent Charlotte history. I am doing this for the following reasons:

• We are living in very complex and trying economic times and it's sometimes difficult to make sense of what is going on;
• I believe we are in the midst of a historic moment, one that will impact generations to come;
• I am a know-it-all and need an outlet!

Earlier today my organization was acquired by Citibank for $2.2 billion dollars. This deal, the brutal result of a loss of confidence in Wachovia, erased approximately $61 billion dollars in value instantly. Many within the organization have only begun to come to terms with the startling events of today and I suspect some never will. Wachovia is a good company with good people, but made a horrible decision two years ago to purchase Golden West, a morgage lender specializing in ARM mortgages.

This acquisition has been horrific for Wachovia, forcing over $12 billion write-offs and triggering fears on Wall Street that the losses would continue. While we have an excellent new CEO in Bob Steel, he was powerless in the face of recent events. Essentially, once WaMu was taken over by JP Morgan, regulatory filings indicated that WaMu's projected losses were greater than anticipated. This was projected onto Wachovia's books and suddenly our stock was being destroyed. Fast forward to Monday and we are now the property of Citibank.

Right now no one knows what will happen to Wachovia's workforce or presence in Charlotte - Citibank is saying all the right things but it is unknown what the strategic intent is for "Citicovia." It will mean some level of job losses and a major ego hit to everyone who has come to expect Wachovia as the acquirer. I am personally optimistic that job losses will be minimized and that both the smaller Wachovia and Citibank will successfully coexist in Charlotte. I'm also somewhat excited about the possibilities with both Wachovia and Citi and look forward to updating this blog as events unfold.

On a seperate but related topic, I am terrified that the House did not pass the economic recovery bill. Folks, regardless of your political affiliation, regardless of your dislike for Wall Street, the time to act is now. This credit crisis is impacting main street - since banks have no trust with each other or borrowers, they have severely restricted credit to small businesses and individuals. This is preventing businesses from making payroll, farmers from buying seed, and you and I from borrowing money for college, cars, and our homes. The crisis is getting worse by the day, yet our political leaders are bickering about philosophies and letting the economy dangle. WE ARE IN SERIOUS DANGER OF AN ECONOMIC MELTDOWN THAT WILL TAKE A DECADE TO RECOVER FROM! Do you want a "lost decade?" Do you want your retirement delayed due to inaction? If not, then you need to contact your representative and demand they vote yes for the recovery bill.

Alternatively, we can wait for our leaders to act and watch our 401's disolve, our jobs dissappear and businesses close. The choice is clear for me.